December 08, 2023 –
In a significant shift in its global manufacturing strategy, Apple and its partners are making a notable push to escalate the production capacity of iPhones in India over the next two to three years. This ambitious move is set to elevate India’s contribution to Apple’s global iPhone production to an impressive one-fourth of the total output. Currently, Apple’s annual global production hovers around 225 million units, indicating the substantial scale of this initiative.
The southern state of Karnataka in India is poised to become a focal point for this expansion. Foxconn, a major Apple supplier, is investing over $1.5 billion in a new facility in this region. This factory, scheduled to commence operations in April of next year, aims to produce 20 million units annually, primarily focusing on iPhone models, within the next two to three years.
Additionally, another significant iPhone manufacturing facility is under development, mirroring the production capacity of the Karnataka plant. Along with the expansion of Foxconn’s existing facilities and Tata Group’s acquisition and scaling up of another factory, these developments collectively signify Apple’s strategy to achieve an annual production capacity of 50 to 60 million iPhones in India within the next few years.
In a related strategic move, Apple is also reportedly nudging its component suppliers to focus on India. Recent leaks suggest that the company has instructed its battery suppliers to consider sourcing for the upcoming iPhone 16 from Indian factories. This decision further emphasizes Apple’s commitment to bolstering its manufacturing presence in India, with current battery suppliers being encouraged to establish new facilities in the country to meet this demand.
This strategic pivot to India not only diversifies Apple’s manufacturing base but also signifies a major boost to the local economy and technological ecosystem. The move is seen as a part of Apple’s broader strategy to reduce its dependency on other regions while tapping into India’s growing technological expertise and workforce.