The Supply Chain Away from China is Diversified by Apple Starting Production in India

| Updated on December 2, 2024
iPhone 16 in India

Apple Inc. has officially started the production of its next-generation iPhone 16 in India, marking a significant step in its strategy to diversify its manufacturing base beyond China. The company has partnered with its major suppliers, including Foxconn, Wistron, and Pegatron, to assemble the new iPhones at their facilities in Tamil Nadu and Karnataka.

It is important to note that, previously, all the high-end smartphone models produced by the California-based company have been manufactured in China, whereas Indian suppliers handled the lower-end and older versions of the iPhone. Now new reports reveal that Apple is mass-producing lots of new iPhones, including the expensive Pro series, in India and China.

The move is part of Apple’s efforts to reduce its dependency on China amid geopolitical tensions and supply chain disruptions. 

By expanding production in India, Apple aims to strengthen its position in one of the world’s fastest-growing smartphone markets and capitalize on the country’s manufacturing incentives. India is currently Apple’s second-largest market after China, and local production is expected to help the company save on import duties, making iPhone smartphones more affordable for Indian consumers.

Job Aspirants outside Foxconn factory

The iPhone 16, which is launched on 9th September 2024 this year, features significant upgrades, including a more advanced camera system, faster processors, and improved battery life. With a growing middle class and increasing demand for premium smartphones in India, Apple’s decision to manufacture the iPhone 16 locally is expected to boost its market share and help with local job creation. 

This marks another milestone in Apple’s “Make in India” journey.

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