Apple's Manufacturing Shift to India Gains Momentum

Apple is accelerating its efforts to reduce dependence on China for iPhone production. According to a Bloomberg report, approximately 14% of iPhones, or one in seven, are now assembled in India. This represents significant progress in Apple's strategy to establish India as a major manufacturing hub.

For years, Apple's heavy reliance on China has posed risks. COVID-19 disruptions at a key iPhone plant cost the company an estimated $1 billion per week. Escalating U.S.-China tensions have also pressured Apple to diversify its supply chain.

India has long been viewed as an alternative manufacturing location. While ambitious targets were set for iPhone production in India, progress was initially slow. However, the latest figures indicate Apple assembled $14 billion worth of iPhones in India during fiscal 2024.

This manufacturing shift helps mitigate risks from over-dependence on a single country and potential disruptions. However, Apple faces challenges in diversifying its supplier base in India. Initially using three suppliers, Pegatron and Tata are now consolidating, potentially leaving Apple with just two assembly partners.

As Apple expands manufacturing in India, maintaining quality standards and supply chain efficiency will be crucial. Industry analysts will closely monitor the company's ability to establish a robust production ecosystem beyond China.

Image: DIW-AIgen

Read next: Instagram's Political Content Clampdown Sparks Economic Concerns
Previous Post Next Post