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Apple Shifts Gear: India to Drive Next Wave of iPhone Production

iPhone production in India

Apple’s move away from depending so heavily on China for iPhone manufacture is hitting a note as the company proceeds to establish “Make in India” program on a larger scale. The tech giant has now shifted its focus from iPhone 15 units already assembling in India to the production of camera modules in the country and is working out efforts to establish collaboration with different local vendors.

Prospective partners

According to what media reports have mentioned, Apple has initiated talks to automate Tamil Nadu-based Murugappa Group and Tata’s Titan Company, a clear indication to their ambition to delve into Indian manufacturing. Collaborating with all these local champions motivates Apple to reinvent a strong production base, create new jobs, and tap into local subsidies, which varies widely by the Indian states.

Local Incentives and Subsidies

Additionally, the timing of negotiations is crucial; it is anticipated that the final agreement will be concluded within the next six months after which components will be assembled and the workforce trained. A strategic move by Murugappa Group in purchasing a camera module manufacturer, has clearly indicated that the company is poised to capture and be an ally in Apple’s upcoming production process.

Titan Plc can also claim a decade-long experience in large-scale manufacturing. However, their inexperience in imaging technology could be a hinderence in clinching the Apple contract. Nonetheless, Apple seeks to leverage India’s manufacturing advantages, including government incentives for partnerships with local suppliers.

Sourcing local components offers Apple the dual advantage of reduced duty costs and potential price drops for Indian consumers in the coming years. As the company continues to diversify its supply chain, these efforts may lead to more affordable iPhone options for the Indian market.

Apple’s evolving approach signifies a notable shift in its global manufacturing strategy, positioning India as a key player in the production of future iPhones. With local partnerships in place, Apple is poised to harness the country’s manufacturing prowess, paving the way for a new era of iPhone production and economic growth in India.

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