Apple is mass-producing its newly launched iPhone 16 series in India trying to diversify its supply chain because of geopolitical tensions between America and China.
Historically, China made all high-end iPhone models, while India churned out low-end and older versions, says the South China Morning Post (SCMP).
Now, however, the latest iPhones, including the high-end Pro series, are being made in India as well as China.
This shows increased confidence in India’s hi-tech manufacturing capabilities, says the Post.
Apple increasing production in India
Apple started assembling iPhones in India in 2017, steadily building up volume.
According to market research firm Canalys, Apple produced nearly 15 million iPhones in India in 2022, rising to 25 million last year, or about 12 per cent of all phones produced.
In the first half of 2024, Apple produced at least 18 million phones in India, which is projected to account for 23 per cent of its total production volume by the end of 2025.
Exports from India
Along the way, Apple has stepped up exports from India.
Various models of iPhone 16 made in India will be available globally within days of its sales launch in September, reported the Economic Times. This is the first time a global product, made in India, will be distributed worldwide so soon after its release, says the Business Standard. For the first time, even the iPhone 16 Pro and iPhone 16 Pro Max models will be shipped overseas from Indian factories.
Earlier iPhone models made in India did not become globally available so soon.
In 2021, India-made iPhone 13 models reached global outlets a few months after their launch. In 2022, there was only a two-week gap before the India-made iPhone 14 became available abroad. In 2023, the iPhone 15 was produced simultaneously in India and China, though the Indian-made devices were only available locally on the first day of sales.
Clearly, India is growing in importance in Apple’s production strategy.
“With the Pro-series now being manufactured in India, it’s clear that Apple’s production capabilities in the country are becoming more efficient,” said Sanyam Chaurasia, a senior analyst at Canalys.
Tech giants moving production away from China
It’s part of a growing trend that tech giants like Apple, Microsoft and Amazon are moving production away from China because of security and economic risks.
In June last year, Apple CEO Tim Cook and other tech executives met India’s Prime Minister Narendra Modi.
Recently, American electronic components maker Jabil said it would establish a manufacturing plant in the southern Indian state of Tamil Nadu, joining other Apple suppliers already there, including Foxconn and Pegatron.
India has lured major tech hardware companies, including Foxconn and computer giant Lenovo Group, with subsidies.
India’s growing prominence in technology has not reduced the importance of China.
China remains an essential market for Apple, though sales have fallen, facing strong competition from domestic manufacturers like Huawei Technologies.
China will continue to be a manufacturing hub for Apple because of “the increasing complexity of device manufacturing and the difficulty in training skilled labour,” said the analyst Sanyam Chaurasia.
“Although India has expanded its supply networks, it focuses only on final product assembly, while China excels in multiple aspects of the production and manufacturing process,” said the Post.