Tag: Global Supply Chain

Highlights Apple directs battery suppliers to expand production in India for iPhone 16. TDK Corp announces plans to produce iPhone lithium-ion batteries in India. Apple faces challenges aligning with India's universal charging port policy. India's growing role in Apple's global manufacturing with potential 25% share by 2024. Apple has a long-standing relationship with China as far as manufacturing is concerned. However, recent moves made by the company are increasingly making India its next manufacturing hub. A key component of this strategy is the acquisition of batteries from India for the forthcoming iPhone 16. iPhone 16 Battery To Be Made In India iPhone 16 Battery To Be Made In India Financial Times, highlights Apple's gradual shift in manufacturing reliance from China to India as quite strategic. Apple’s battery suppliers such as Desay in China and Simplo Technology in Taiwan have been told to set up or expand their production capacities in India. Furthermore, TDK Corp, a Japanese electronic components manufacturer, has announced plans to produce lithium-ion battery cells for Apple's iPhones in India. Rajeev Chandrasekhar, minister of state for electronics and IT said on X "Another big win for PM @narendramodi ji’s visionary PLI scheme in shifting the mobile manufacturing ecosystem to India. TDK, a leading supplier of cells to Apple, is setting up a 180-acre facility in Manesar, Haryana to build cells for batteries which will be used in the #MadeInIndia iPhones," Union Minister Rajeev Chandrasekhar was the architect of this deal and referenced it as a significant success for India's manufacturing sector. The deal, like a few others, was influenced by the Production Linked Incentive (PLI) scheme launched by the government which incentivises local manufacturing. TDK is preparing to establish a facility in Manesar, Haryana, specifically for making Apple batteries. Apple’s Regulatory Hurdles Apple To Reportedly Shift iPhone 16 Battery Manufacturing to India However, there have been recent challenges to Apple to align with India's regulatory environment. The company has expressed concerns regarding India's potential adoption of a universal charging port policy, similar to that of the European Union. Apple has sought exemptions or delays in implementing this standard, which mandates USB-C charging ports, as it could impact its local production goals. Back in August, it was reported that Apple plans to enhance its component manufacturing footprint in India. The Cupertino-based electronics giant aims to increase its production capacity significantly in the country, targeting a value of approximately $40 billion over the next 4-5 years. India Becoming A Key Manufacturing Hub India Becoming A Key Manufacturing Hub India is slowly but steadily becoming a key Apple partner despite the country’s regulatory hurdles. Apple analyst Ming-Chi Kuo estimates that India currently accounts for 12 to 14 percent of global iPhone shipments, an absurd number considering how negligible India’s contributions were just a few years ago. The figure is expected to double to 20 to 25 percent by 2024. Additionally, the iPhone 17 is set to begin its initial production in India by the second half of 2025, a first for Apple's new iPhone models outside of China. Apple is looking to reduce its manufacturing dependency on China because there have been several production delays owing to the country’s strict COVID-19 rules. A new frontier in India not only helps Apple realign its manufacturing strategy more effectively but also opens new job opportunities in the country. FAQs What is the significance of Apple's shift in manufacturing to India? Apple's decision to move iPhone 16 battery production to India marks a strategic shift away from its traditional reliance on Chinese manufacturing, indicating India's increasing importance in global tech production. Which companies are involved in Apple's new manufacturing strategy in India? Key players include Desay, Simplo Technology, and TDK Corp, all directed by Apple to set up or expand their battery production capacities in India for the iPhone 16. How does India's regulatory environment impact Apple's manufacturing plans? India's proposed adoption of a universal USB-C charging port policy poses challenges for Apple, potentially affecting its local production goals and requiring adjustments to align with these regulations. What are the projected impacts of Apple's manufacturing shift on India's economy? This move is expected to significantly boost India's manufacturing sector, with Apple aiming for a production value of $40 billion in 4-5 years and increasing India's share in global iPhone shipments to 20-25% by 2024. How might the iPhone 16 Pro series improve battery and thermal performance? The iPhone 16 Pro series is rumoured to introduce a new metal shell battery, a departure from traditional foil coverings. Additionally, there are talks of incorporating a graphene thermal system to enhance heat dissipation and improve the device’s overall performance. What is the rumoured battery capacity of the iPhone 16 Pro? The iPhone 16 Pro is rumoured to feature a 3,355mAh battery, which is approximately a 2.4% increase from the 3,274mAh battery in the iPhone 15 Pro. This increment suggests a focus on extending battery life in the upcoming model. How is Apple planning to prevent overheating in the iPhone 16? For the iPhone 16, Apple is reportedly developing a new graphene-based thermal management system. This system is expected to be more efficient in heat dissipation compared to the copper heat sink used in the iPhone 15. What additional hardware change is expected in the iPhone 16 for better cooling? Alongside the new thermal system, the iPhone 16 is rumoured to include a metal bracket around the battery. This design is anticipated to aid in more effective heat dissipation, particularly for the device’s chip and battery. What does Foxconn’s $1.5 billion investment in India signify? Foxconn’s $1.5 billion investment represents a strategic shift in Apple’s iPhone production, moving away from a China-centric approach. This initiative in India is aimed at enhancing operational capacity and diversifying manufacturing locations. How does this investment align with the broader ‘China+1’ strategy? The ‘China+1’ strategy involves diversifying manufacturing bases beyond China. Foxconn’s $1.5 billion investment in India is a significant step in this direction, helping mitigate risks associated with over-reliance on a single country. What impact will Foxconn’s investment have on India’s role in global manufacturing? Foxconn’s investment is likely to significantly boost India’s position in the global supply chain. By expanding iPhone production capabilities, it could potentially double the country’s output by 2024, enhancing India’s manufacturing stature. What percentage of iPhones were made in India in 2023? In 2023, 14% of all iPhones shipped globally were produced in India, marking a significant increase in the company’s manufacturing diversification. Which major tech manufacturer is responsible for most of the Indian iPhone production? Foxconn, a key player in tech manufacturing, is behind 80% of the iPhone production in India. How has the COVID-19 pandemic affected Apple’s production? The pandemic caused many of Apple’s manufacturing units in China to halt operations, resulting in significant financial impacts and urging Apple to diversify its production base. When is Apple planning to start the production of iPhone 17 in India? As per analyst Ming-Chi Kuo, Apple aims to commence the preliminary production of the standard iPhone 17 in India by the second half of 2024. Also Read: 14 percent of 2023’s iPhones “Made in India” Signalling Apple’s Major Production Shift Also Read: iPhone 16 Action Button Rumoured To Come With New Innovations For Better Interactions Also Read: Apple to open three more stores in India as newly opened apple stores record 50 crore monthly sales in a move to expand retail footprint Also Read: Best 5G Supported Apple iPhones in India Also Read: Foxconn Announces $1.5 Billion Investment in India, Boosting iPhone Production

Tag: Global Supply Chain

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