Apple Plans to Move Quarter of Global iPhone Production to India

Apple is set to amplify its iPhone production in India, with plans to manufacture over 50 million units annually within the next two to three years, or a quarter of the global iPhone output.

According to The Wall Street Journal, this move signifies a significant shift in iPhone manufacturing, diverting a substantial portion from China to India.

Apple has been gradually elevating its reliance on India, despite the challenges posed by infrastructure limitations and stringent labor regulations.

Foxconn is at the forefront of this strategic shift, planning to inaugurate a plant in Karnataka in April, projected to produce 20 million iPhones in the coming years.

Additional plans for another sizable iPhone production facility are in the preliminary stages, reflecting Apple’s intention to boost production capacity in India significantly.

India has been selected by Apple as a site for a new product introduction stage for lower-end iPhones, a responsibility previously held exclusively by China.

These developments, along with plans for expanded production at existing Foxconn and Tata plants in India, signify Apple’s ambition to manufacture 50-60 million iPhones annually within the next few years.

Foxconn’s recent investment announcement of over $1.5 billion in India underlines the commitment to expand production, with significant allocations expected for Apple’s iPhone manufacturing.

This year, India-made iPhones debuted globally on the first day of sales for the latest models, eliminating the delay seen with China-made units.

Hourly wages in India are notably lower than in China, although transportation costs remain higher. Additionally, resistance from labor unions to rule adjustments remains a hurdle for manufacturers.

Nonetheless, Apple continues to recognize China’s importance both as a production hub and a crucial consumer market.