Apple iPhone 16 Batteries To Be Made In India

Apple has communicated to its component suppliers its desire for the iPhone 16 batteries to be manufactured in India. This step is part of Apple's effort to diversify its supply chain across more global regions and to reduce its reliance on Chinese manufacturing. This strategy might also serve as a contingency plan for a post-China era in global manufacturing, especially considering the escalating geopolitical tensions between the US and China.

The Financial Times has reported that Apple has notified its battery suppliers, including Desay and Taiwan’s Simplo Technology, of its preference for the production of next year’s iPhone batteries in India. The tech giant has urged these suppliers to either build new factories or expand the capacities of their existing sites to meet future orders.

A source close to Apple, speaking to the Financial Times, mentioned, "If all goes well with the iPhone 16 battery supply, Apple plans to shift more of its iPhone battery production to India."

In India, Apple collaborates with Foxconn, Pegatron, and Tata for iPhone manufacturing. Notably, the year 2023 marked the first instance when Apple launched its latest iPhone model in India concurrently with the US. The Tata facility, formerly under Wistron's ownership, plays a significant role in this venture. Foxconn continues to oversee 75-80% of the iPhone assembly in India and has invested an additional $500 million to escalate its manufacturing operations.

Analyst Ming Chi Kuo estimates that 12-14% of iPhone shipments could be manufactured in India, with the potential to increase to 20-25% by 2025 for the iPhone 17. Kuo also highlights a groundbreaking development in iPhone production, with the process commencing outside of China for the first time, with India as the primary beneficiary.

Additionally, Apple is enhancing its relationship with the Indian government. In a landmark move in 2023, Apple inaugurated its first company-owned stores in Delhi and Mumbai, underscoring its expanding presence and commitment to the Indian market.