Highlights
- Apple is putting in a lot of effort with its suppliers to increase production in India.
- It is expected that India will produce up to 25% of all iPhones by the end of 2023.
- Apple is building its largest iPhone production facility near Bengaluru.
- Tech giant Apple to shift 50% iPhone production to India. India to produce half of the world’s iPhones by 2027.
India Plans to Manufacture more iPhones
India could well be giving a China a run for its money when it comes to manufacturing smartphones as a recent report by South China Morning Post has cited that India will produce around 45-50% of Apple’s iPhones by 2027, which will put it almost neck-to-neck with China.
It was China that produced nearly 80-85% until 2022 but according to renowned research analyst Luke Lin from DigiTimes, it is India and Vietnam that stand to gain by becoming two of the biggest beneficiaries of smartphone manufacturing supply out of China.
“However, the speed of supply chain migration to India will be accelerated in the future because of the need for diversifying risks in light of uncertainties of China’s pandemic control,” said Lin.
“Some Apple Watch probably will also be assembled outside China as well,” Lin mentioned.
They believe it will help local consumers to identify with its brand and help to expand its market share there,” Lin said.
There are strong speculations that India is anticipated to produce around 25% of the iPhones by the end of 2023 and up 40% by 2025 end, which is a huge increase as the current rate of India’s manufacturing progress is less than 5%.
If the South China Morning Post report is anything to go by, India will have increased its level of production to be on par with mainland China, which can be easily believed going by the aforementioned speculations.
In November 2022, Ashwini Vaishnaw, Telecom and IT Minister, had clarified that Apple would be building the largest iPhone production facility in Hosur, which is an industrial city found in the Krishnagiri district, around 40km from Bengaluru where there are plans to employ up to 60,000 people, while 6,000 tribal women from Ranchi and Hazaribagh have received training for assembling iPhones.
Tata Electronics has been chosen by Apple for making iPhone enclosures as the company has its own factory in Hosur, which would be an interesting collaboration that proves beneficial for both companies in the future.
It needs to be mentioned that Tata Group has long nurtured an ambition of manufacturing iPhones in India with a huge deal for taking over the plant in South India waiting to be finalized and once it signs on the dotted line, Apple will finally gain local suppliers for iPhones, with additional support being provided from Foxconn and Wistron for iPhone production in India.
Apple had already begun iPhone production in India via Wistron way back in 2017, beginning with iPhone SE, and since then, has been doing is putting massive efforts to manage its supplier base in India so that production could be magnified.
Apple has also announced that it would be manufacturing iPhone 14 at Foxconn’s Sriperumbudur factory.
India Will Become iPhone Factory by 2027
“Made in India” iPhones would reach 50% by 2027. There are reports that it would happen much later, but whatever it maybe, Apple has already made its decision to shift 50% iPhone production in India.
With Covid-19 totally disrupting the world’s biggest iPhone plant in China resulting an astronomical loss of billion dollars per week, Apple hopes to recuperate on these losses by shifting focus to India, which is the second largest iPhone production centre in the whole world as of now.
Frequently Asked Questions on (FAQ) iPhone Production?
Question 1- In which Indian city does Apple plan on building its largest iPhone facility?
– Apple has chosen Bengaluru, the silicon valley of India, as the place to built its largest iPhone factory.
Question 2- When did Apple begin producing iPhones in India?
– Apple had begun iPhone production in India back in 2017 with the help of Wistron with the very first model produced being iPhone SE and has been totally committed since then to increase its supplier base so that production is multiplied.
Question 3- Where is the largest iPhone production facility planned in India?
– Apple has chosen Hosur, a district city around 40km from Bengaluru, to build the largest iPhone facility for which it has chosen Tata Electronics for making the iPhone enclosures. Tata Group hopes to capitalize on its ambition for manufacturing iPhones in the country so that it can strike a huge deal in procuring the plant based in South India.
Question 4- How will China’s decline in iPhone production prove beneficial to India and Vietnam?
– Up until 2022, it was China that produced nearly 80-85% of the iPhones but Covid-19 has proved to be extremely devastating to China as it had the world’s biggest iPhone plant, due to which renowned research analyst Luke Lin from DigiTimes, opines that it is India and Vietnam that stand to gain by becoming two of the biggest beneficiaries of smartphone manufacturing supply out of China.
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