Apple and its suppliers have ambitious plans to manufacture over 50 million iPhones in India every year within the next two to three years, Wall Street Journal reported citing sources. This move is part of Apple’s strategy to reduce its dependence on China and diversify its supply chain. If successful, India would account for a quarter of global iPhone production by the end of the decade.
Last month, Foxconn, one of Apple’s key suppliers, showed its commitment to India by announcing an investment of over $1.5 billion in India. Prime Minister Narendra Modi’s production-linked subsidies have incentivized Apple’s suppliers to increase their manufacturing operations in India.
According to the Wall Street Journal report, the construction of a Foxconn plant in Karnataka is expected to begin operations in April and aims to produce 20 million mobile handsets annually, predominantly iPhones, within the next two to three years.Additionally, plans for another iPhone-producing megaplant are in the early stages.
Apple has been gradually increasing its reliance on India in recent years. In the previous fiscal year, the company assembled over $7 billion worth of iPhones in India, accounting for around 7% of the device’s production, according to a Bloomberg report. This year, India-made iPhones were introduced on the first day of global sales.
Tata Group, Bloomberg reported, is also planning to build a significant iPhone assembly plant in Tamil Nadu. The facility is expected to have approximately 20 assembly lines and employ 50,000 workers within the next two years. The goal is to have the plant operational within 12 to 18 months. This move will strengthen Apple’s partnership with Tata, which already owns an iPhone factory in Karnataka.
Tata group is also expanding the iPhone factory in Karnataka where it manufacture enclosures, or metal casings. Apple has opened two stores in India and is planning to add more.
Source: indiatimes
Image: reuters