
Apple aims to diversify its production capabilities beyond China.
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Apple aims to diversify its production capabilities beyond China.
Apple Inc. is setting ambitious plans to quintuple its manufacturing output in India to approximately $40 billion over the next four to five years, according to company financials. This move comes as the tech behemoth aims to diversify its production capabilities beyond China.
The Cupertino-based company recently synchronised the Indian launch of its iPhone 15 series with the U.S. market, a first for Apple. This was made possible by ramping up production schedules for the new models. Apple also disclosed plans to begin manufacturing its popular AirPods in India starting next year.
However, the company has no intentions of extending its Indian manufacturing to include iPads and MacBooks. Additionally, Apple has opted not to participate in the Production-Linked Incentive (PLI) schemes rolled out by the Indian government, choosing instead to focus on scaling existing operations.
"The iPhone 15 series has been met with unprecedented demand in India, selling out on the first day," said industry analysts, noting a 100% growth rate over the iPhone 14 models. Apple dominates the ultra-premium smartphone market in India—devices priced above Rs 45,000—with a 59% share. The country has also emerged as one of Apple's top five global markets.
In a significant milestone, Apple outpaced South Korean rival Samsung in Indian export volumes for the first time. The company accounted for 49% of the 12 million shipments in June, compared to Samsung's 45%. This marks a considerable leap from Q2 2022, when Apple's share was just 9% of an 8 million shipment market.
Apple began its manufacturing journey in India in 2017, partnering with Foxconn, Pegatron, and Wistron. All three contract manufacturers are participants in the Indian government's PLI schemes. In a recent development, Wistron sold its manufacturing facilities to Tata Sons, making it the first local company to engage in iPhone production.
This strategic move is part of a broader initiative to boost gadget manufacturing in India and develop a local supply chain for key components, such as semiconductors.
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