In an effort to consolidate its manufacturing base in India, Apple will significantly ramp up iPhone production through its key partner, Foxconn. The Taiwanese manufacturing giant will produce 25 to 30 million iPhones in India this year, a whopping increase from last year’s production of approximately 12 million units.
Foxconn’s ambitious production goal is also a bid to align with Apple’s plan to decrease its reliance on China as its production hub. Foxconn has been conducting trial productions in its Bengaluru factory for months now in ensuring that its production is aligned with Apple’s high quality standards.
Once completed, Foxconn will move to the revenue build stage, where the production will transition from trial to full-scale manufacturing.
As per TOI, A senior analyst at Isaiah Research, Lori Chang, noted that the move could elevate India’s share of global iPhone production from 12-16% last year to as much as 21-25% this year. Foxconn’s Bengaluru facility, sprawling over 300 acres, is set to become one of its largest outside China, with additional units in Hyderabad to manufacture AirPods.
Industry analysts are of the view that expanded production capacity in India is a geopolitical move to counterbalance tensions in Apple’s China supply chain. As the tech giant tries to diversify away from Chinese production, India emerges as a key hub for assembly and export, with components being exported to Chinese and Vietnamese markets.
The Foxconn decision continues a wider Apple strategy to expand its presence in the Indian market. The achievement of the Bengaluru plant to satisfy both local and overseas demands may open the door for more local production of Apple products in the future.
As India’s role in Apple’s world ambitions increases, the country will likely benefit economically as well as technologically, a quantum jump to a world manufacturing center.
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