Apple’s India Strategy: 18% of Global iPhone Production to be Based in India by 2025

Updated: 14-06-2023, 12.30 PM

Apple to Move 18% of Global iPhone Production to India

Apple is reportedly planning to shift 18% of its global iPhone production to India by 2025. The move is part of the company’s efforts to reduce its reliance on China for manufacturing.

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According to a report by Nikkei Asia, Apple has been in talks with Indian manufacturers about increasing iPhone production of its iPhones in the country. The company is reportedly looking to set up new manufacturing facilities in India and to increase the capacity of existing facilities.

The move to shift iPhone production to India is seen as a win-win for both Apple and India. For Apple, it will reduce its reliance on China, which is currently the company’s largest manufacturing partner. India, on the other hand, is looking to attract more foreign investment in its manufacturing sector.

iPhone Production

The Indian government has been offering incentives to foreign companies to set up manufacturing facilities in the country. The government has also been working to improve the country’s infrastructure, which has made it easier for foreign companies to do business in India.

Apple’s decision to shift production to India is a sign of the country’s growing importance in the global manufacturing landscape. India is now the world’s fifth-largest smartphone market and it is expected to become the third-largest by 2025.

The move is also a boost for the Indian government’s Make in India initiative, which aims to make India a global manufacturing hub.

Benefits of Apple’s Production Shift to India

There are a number of benefits to Apple’s production shift to India.

Reduced costs: India has a lower cost of labor than China, which will help Apple to reduce the cost of manufacturing its iPhones.
Closer proximity to customers: India is a major market for Apple products, and the company will be able to get its products to customers faster by manufacturing them in India.
Favorable government policies: The Indian government has been offering incentives to foreign companies to set up manufacturing facilities in the country. These incentives include tax breaks, land subsidies, and access to government procurement contracts.

Challenges for Apple in India

While there are a number of benefits to Apple’s production shift to India, there are also some challenges that the company will need to overcome.

Competition: India is a competitive market for smartphones, and Apple will face competition from local brands as well as from international brands such as Samsung and Xiaomi.
Infrastructure: India’s infrastructure is not as developed as China’s, which could pose challenges for Apple in terms of transporting components and finished products.
Skills shortage: India has a shortage of skilled workers in the manufacturing sector. This could make it difficult for Apple to find the workers it needs to ramp up production in India.

Despite these challenges, Apple’s production shift to India is a positive development for the company and for the Indian economy. The move will help Apple to reduce its costs, get its products to customers faster, and benefit from favorable government policies

Here are some of the key takeaways from this blog post:

Apple is planning to shift 18% of its global iPhone production to India by 2025.
The move would represent a significant increase in Apple’s manufacturing presence in India, which currently accounts for just 5% of the company’s global iPhone production.
The move is a sign of Apple’s commitment to India, which is one of its fastest-growing markets.
The increase in production in India is also a sign of Apple’s confidence in the country’s manufacturing capabilities.
The increase in production in India is good news for the Indian economy and Apple customers in India.

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