The increase in India-based production reflects a gradual shift in Apple’s manufacturing strategy.
American multinational tech giant Apple is aiming to manufacture more than 50 million iPhones annually in India within the next two to three years, according to a report by The Wall Street Journal. If successful, the country would account for 25% of global iPhone production by the end of the decade.
Once the 50 million goal is achieved, the iPhone maker further looks to manufacture additional tens of millions of iPhone units thereafter. This ambitious plan marks a pivotal move in Apple’s efforts to diversify its supply chain and reduce its dependence on China. Apple plans to achieve the goal by creating an ecosystem of its suppliers like Foxconn, which has lately expanded its presence in the southern part of the country.
A cornerstone of this expansion is the construction of a Foxconn plant in Karnataka, slated to commence operations in April. This facility is expected to produce 20 million mobile handsets, predominantly iPhones, a year within the next two to three years. Foxconn also has invested in two other southern Indian states of Tamil Nadu and Telangana.
Reportedly, the expansion of production capabilities at an existing Foxconn facility near Chennai, coupled with the recent acquisition of another plant by the Indian conglomerate Tata, indicates Apple’s strategy to boost its annual iPhone manufacturing capacity in India to approximately 50 to 60 million units over the next two to three years. Furthermore, the Tim Cook-led company has also chosen India as its site for a manufacturing stage for lower-end iPhones to be sold in 2025.
The increase in India-based production reflects a gradual shift in Apple’s manufacturing strategy. Beyond manufacturing, Apple has opened two retail stores in the country and is planning further expansions. This commitment is part of a broader trend among multinational companies looking to reduce their reliance on China, driven by diplomatic efforts and geopolitical shifts.