Apple to produce over 50 million iPhones annually in India
What's the story
Apple has set its sights on producing over 50 million iPhones in India each year within the next two to three years.
This move, in collaboration with its main supplier Foxconn, would shift a significant portion of its manufacturing away from China.
This plan would make India responsible for a quarter of the world's iPhone production, with even more growth expected by the end of the decade.
What Next?
Foxconn's investments and expansion in India
Apple's supplier, Foxconn, has also been investing heavily in India.
Recent security filings indicate a $1.5 billion investment for "operational needs."
In July, the Taiwanese firm inked a deal with Tamil Nadu to invest $194 million in a new electronic components manufacturing facility, which is expected to create 6,000 jobs.
Furthermore, Foxconn began construction on a production plant near Hyderabad in May and plans to launch another facility near Bengaluru by April 2024, providing 14,000 jobs.
Details
Tata Group to build iPhone manufacturing plant
Separately, Tata Group is constructing a manufacturing facility specifically for iPhone production.
This massive plant will employ around 50,000 workers across 20 assembly lines and is anticipated to be up and running within the next 12-18 months.
This move aligns with Apple's strategy to diversify its manufacturing and increase its presence in India, while also supporting India's goal of becoming a major electronics manufacturing hub.
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Why the shift to India?
Akin to many other companies, Apple is worried about its overreliance on China for manufacturing/sales, and is hence looking for alternative locations such as India.
Boosting manufacturing here would create thousands of new jobs as well as opportunities for local contractors.
However, it will have to contend with high tariffs and regulatory bottlenecks.