Apple’s primary production partner, Pegatron, currently has exclusivity on assembling iPhone Pro models at their factory in Zhengzhou, China. However, Foxconn, another major partner of Apple, plans to invest about $700 million to build a new plant in Bengaluru, India, to ramp up local production.
This move is part of Apple’s larger strategy to rely less on China and diversify its supply chain. In recent years, Apple has started assembling some of its latest iPhone models in India to reduce its dependence on China. In fact, Indian officials aim to bring $150 billion worth of smartphone production to the country, and Apple’s assemblers are looking to shift some operations from China to India.
Apple’s move to shift its manufacturing to India is likely to have several benefits. Firstly, it would help Apple reduce its reliance on China, which has been under scrutiny for its labor practices, intellectual property theft, and geopolitical tensions. Secondly, setting up a manufacturing plant in India would allow Apple to take advantage of the country’s growing smartphone market, which is expected to surpass the US as the second-largest market in the world by 2025.
Moreover, manufacturing in India could help Apple reduce costs as labor and production expenses in India are lower than in China. Additionally, the Indian government has been offering incentives to companies to manufacture in the country under its “Make in India” initiative.
In conclusion, Apple’s plans to invest $700 million to build a new manufacturing plant in India is part of its larger strategy to reduce dependence on China and diversify its supply chain. With the Indian smartphone market expected to grow significantly, this move could help Apple tap into the market’s potential and reduce its manufacturing costs. Furthermore, the Indian government’s incentives for manufacturing could make it an attractive destination for other tech companies looking to expand their production capabilities.
