In a strategic move signaling a significant shift in global manufacturing, Apple Inc. is set to ramp up the production of iPhones in India, with plans to manufacture over 50 million devices annually within the next two to three years, according to a recent report by the Wall Street Journal.
This development comes in the wake of Apple’s gradual withdrawal from China, a move that appears to be gaining momentum as the company seeks to diversify its production base. Industry insiders suggest that Apple and its suppliers are eyeing a substantial increase in production capacity, with the possibility of additional tens of millions of units in the pipeline.
Last year, global iPhone shipments surpassed 220 million, maintaining a relatively steady trajectory in recent years, as reported by research firm Counterpoint. If Apple’s ambitious plans for boosting Indian iPhone production materialize, it could result in India accounting for over 25% of the annual global iPhone production.
Traditionally, China has served as the epicenter of iPhone manufacturing, a trend that is expected to persist. However, Apple has encountered challenges in China, including stringent labor regulations that pose obstacles to smooth business operations. Labor unions are pushing back against proposals for extended 12-hour workdays, adding another layer of complexity.
The strained relations between the United States and China further underscore Apple’s decision to pivot towards India. As geopolitical tensions escalate, Apple appears to be strategically repositioning itself to minimize risks associated with dependencies on any single country.
Insiders within the supply chain suggest that Apple’s focus on India is transitioning from a preliminary phase to a more expansive stage of development. Plans for new manufacturing plants and the expansion of production capabilities underline Apple’s commitment to establishing a robust manufacturing ecosystem in India. Sources close to the planning process indicate that Apple aims to achieve a production capacity of at least 50 million to 60 million iPhones annually within the next two to three years.
As Apple charts this new course, it not only signifies a boost for the Indian manufacturing sector but also reflects the broader global realignment of tech manufacturing hubs, with India poised to play a pivotal role in Apple’s future production landscape.