Apple is reportedly planning to triple its iPhone production capacity in India within the next two years, according to a new report from the Indian publication Mint. The move is part of Apple’s ongoing effort to diversify its supply chain and reduce its reliance on China, where many of its products are currently manufactured.
According to the report, an unnamed “senior industry executive” said that Apple “is looking to scale up the volumes that they make from India. It can rise by more than three times what they aim to make this year.” The report cites that senior management members at Apple India have already instructed suppliers such as Foxconn, Pegatron, and Wistron to increase their capacity and manpower in the country.
Foxconn already assembles the iPhone 14 devices in India and is now looking to shift a major chunk of iPhone production to the country. A report last week claimed that the company is also planning to manufacture iPad in the subcontinent country.
Diversifying its supply chain has become increasingly important for Apple as the US-China trade war continues to escalate. Moreover, the ongoing COVID-19 pandemic has highlighted the need for companies to have a more resilient supply chain that is not reliant on a single location. India has emerged as an attractive option for Apple due to its large and relatively low-cost workforce, as well as the Indian government’s efforts to attract foreign investment in its manufacturing sector.
And it’s not only about supply chain effects, but Apple’s relationship with China is under increasing scrutiny. The company has been criticized for limiting the availability of AirDrop, a tool that protestors have often used to share information critical of the Chinese government.
Apple’s plan to increase iPhone production in India is not without its challenges, however. India’s infrastructure and logistics network are not as developed as China’s, which could make it more difficult and expensive to transport parts and finished products. In addition, India’s labor laws and regulations are stricter than those in China, which could make it more difficult for Apple and its suppliers to increase their workforce rapidly.
Despite these challenges, it appears that Apple is committed to increasing its presence in India as it looks to diversify its supply chain and reduce its reliance on China.
Source: Mint
