In recent years, Apple has taken serious steps to reduce its manufacturing dependence on China. As a result, iPhone production in India has increased significantly. In an important step for Apple to diversify its global manufacturing base and reduce its dependence on China, a significant portion of iPhone production has moved to another country.
One in seven iPhones is now made in India
Apple has long targeted India as a second manufacturing hub, and is actively making significant investments towards this goal. The disruptions to manufacturing facilities in China during the COVID-19 pandemic have highlighted the risks of Apple being overly dependent on a single country. That’s why utilizing a large market and manufacturing capabilities like India is of strategic importance to Apple.
The growth in iPhone production in India is not only a result of the pandemic, but also of political factors. Factors such as the growing tensions between the US and China and the Chinese government’s efforts to discourage its citizens from buying iPhones have increased Apple’s determination to reduce its dependence on China.
With the increase in iPhone production in India, Apple’s supply chain management has also changed. Previously, assembly work in India was split between three different suppliers. However, recent developments suggest that suppliers such as Pegatron and Tata are collaborating more closely, allowing Apple to further optimize its assembly work.
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These developments are expected to have a significant impact on Apple’s future manufacturing strategy. Increased production in India will allow the company to reduce its reliance on China and further stabilize its global supply chain.
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