Should the new plans materialise, India could contribute a significant quarter share to the overall global iPhone production by the end of the decade, as per WSJ. Image: Nilay Patel/Unsplash
Apple is planning on producing over 50 million iPhones in India each year within the next two to three years, which equals to one-fourth of the entire global iPhone production, as per a recent report by the Wall Street Journal.
This strategic move is seen as part of Apple's broader initiative to reduce its reliance on China and foster greater diversification in its global supply chain. Should these plans materialise, India could contribute a significant quarter share to the overall global iPhone production by the end of the decade.
The commitment to this endeavour was recently underscored by Foxconn, a key supplier for Apple, which announced a substantial investment exceeding $1.5 billion in India. The WSJ report adds that production-linked subsidies by the Prime Minister of India, Narendra Modi, have also played a pivotal role in incentivising Apple's suppliers to expand their manufacturing operations within the country.
The Wall Street Journal report further states that the construction of a Foxconn plant in Karnataka is slated to commence operations in April, with an ambitious goal of producing 20 million mobile handsets annually, predominantly iPhones, within the next two to three years. Moreover, preliminary plans are reportedly underway for the establishment of another mega plant dedicated to iPhone production in India.
According to a report by Bloomberg News, Apple produced over $7 billion worth of iPhones in India in the previous fiscal year, amounting to about 7% of the entire iPhone production in the world.