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Apple is making significant strides in its efforts to reduce its reliance on Chinese manufacturing by moving iPhone production to facilities in India. Reports suggest that the company is ahead of schedule in its efforts to expand its manufacturing presence in the country, with production capacity nearly tripling since 2021.
The ultimate goal for the tech giant is to manufacture 25% of all iPhones in India. While this goal was not expected to be achieved until Spring 2023, Apple is now reportedly making almost 7% of its iPhones in the country. This equates to over $7 billion worth of iPhones in the last fiscal year alone, which is an increase from Bloomberg’s previous estimate of 6.5 million iPhones for the period.
To achieve this expansion, Apple is working with a series of partners in India, including Foxconn and Pegatron. According to an unnamed manufacturer, these companies have been adding assembly lines at a rapid pace over the past year.
Apple and Foxconn are also said to be lobbying the Indian government for labor reform that would allow factories to run two shifts, enabling them to operate 24 hours a day. This move would increase production efficiency and further accelerate Apple’s efforts to ramp up iPhone manufacturing in India.
The shift in manufacturing away from China is a strategic move for Apple, which is looking to diversify its supply chain and mitigate risks associated with tariffs and other trade issues. India offers several advantages as a manufacturing base, including lower labor costs and a large pool of skilled workers.
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While Apple has faced challenges in meeting quality standards for products manufactured in India, the company is committed to investing in the country and building a strong local supply chain. The success of its manufacturing efforts in India will be closely watched in the coming years as the company continues to expand its presence in the country.
