Tata Will Start Making iPhones In India Next Year

Tata Electronics has successfully acquired Wistron's assembly plant near Bangalore, which manufactures Apple's iPhones. This deal, which had been in progress for months, was finalized with the assistance of a meeting between Apple CEO Tim Cook and Tata Sons chairman N Chandrasekaran during Cook's visit to India in April. The acquisition makes Tata the first Indian company to produce iPhones in India. The deal, which was valued at $125 million, was officially announced through a statement.

In a tweet, Rajeev Chandrasekhar, the former Intel executive who currently serves as the junior IT minister for India, praised the Indian government's Production-Linked Incentive (PLI) scheme and congratulated Tata for taking over Wistron's operations. Chandrasekhar also expressed support for the growth of global Indian electronics companies, emphasizing their role in making India a global electronics power.

The PLI scheme has significantly benefitted the local manufacturing sector. Launched in 2021, it covers 14 sectors, including large-scale electronics manufacturing, automobiles, semiconductors, advanced chemistry cell batteries, and drones. The scheme has a budget allocation of Rs. 1.97 lakh crores.

Apple has already exported goods worth $5 billion from India. The company intends to manufacture 25 per cent of its total iPhones in India over the next 4-5 years. Tata, an established corporate entity with a 150-year history, is involved in various industries, from salt production to tech services. The company is now expanding into the semiconductor sector and currently produces iPhone chassis at its factory in Tamil Nadu.

Since 2017, Apple has been manufacturing iPhones in India. However, in 2023, the latest iPhone 15 model was launched in India on the same day as in the United States for the first time, highlighting the growth of local manufacturing. Apple has intensified its focus on India and considers it one of its top five markets.

Apple's decision to diversify iPhone manufacturing to India is partly influenced by geopolitical tensions between the US and China, as well as the strict COVID-related lockdowns in China. Rising labour costs in China have also impacted Apple's profitability with regard to iPhone production.