As Apple's medium-term plans unfold, iPhone production in India will deepen

As Apple's medium-term plans unfold, iPhone production in India will deepen ...

A new report claims to reveal further details on Apple''s medium-term plans to expand and deepen iPhone production in India as it attempts to reduce China''s dependency.

It follows and supports yesterday''s suggestion that enough iPhones for the entire US market might be shipped outside China within three to five years.


Steve Jobs delivered the majority of Apple products to China because it was the world''s only country with a massive supply-chain network and the ability to increase production almost immediately.

This was driven by the Chinese government, who has spent more than 40 years imagining the conditions required to become the tech world''s manufacturing center.

However, the company''s dependency on China for the bulk of its production has become the single greatest risk. Recently, there have been signs of the Cupertino company accelerating its plans to reduce this dependence.

India''s iPhone manufacturing is rapidly growing.

The (original) iPhone SE was first introduced by Apple in India, but only models for sale within the country. Since then, many new devices have been added, including the iPhone 14.

Despite Foxconn''s decision on making the latest models, the Financial Times reports that all three of Apple''s iPhone assembly partners are now developing the iPhone 14.

Three Taiwanese companies that already work for Apple in India Foxconn, Pegatron, and Wistron will set up their 14 operations on their sites in the countrys south, according to two persons familiar with the secretive US companies'' operations.

It would result in a significant boost in the company''s plans, but it is consistent with other recent reports. It was believed that Apple had originally planned to begin production simultaneously in China and India, and that it had only narrowly missed this goal. This is now expected for the iPhone 15.

JP Morgan argued that by 2025, a total of 25% of all iPhone assembly might take place in India.

Apple to deepen iPhone production in India

Actually, iPhone production in India includes only a final assembly. Besides the components, many of the pre-assembled components are imported from China.

According to the Indian government, Apple is assisting in local production of at least some of the components.

According to Ashwini Vaishnaw, India''s railways and IT minister, the country''s government is actively encouraging and supporting Apple''s investments and initiatives to establish a supply chain in India []

Vaishnaw said that all industries begin with bringing product assembly. In the next two to four years this goes deeper, when components and modules manufacturing begin, and a full-fledged local ecosystem is created.

In vehicle manufacturing, there is a precedent for this, where companies like Maruti Suzukibegan have completed their final assembly in India, and have since established an extensive supply chain within the country.

Nothing is simple

However, as tensions between the US and the Chinese governments are among Apple''s intentions to expand production out of the country, there are concerns that tensions between India and China might hinder the plans.

Physical disputes over the long-running border dispute between the two countries in the Himalayan region have erupted. The border has historically been only vaguely defined by natural features such as rivers and lakes, but melting snow may have shifted these points.

China is unlikely to welcome India''s desire to become a major competitor in technology manufacturing, especially if India has performed things like banning Chinese apps.

Photo: iFixit