Apple’s Bold Move: Majority of iPhones Sold in the U.S. Will Soon Be ‘Made in India’
In a significant shift, Apple is set to manufacture most of its iPhones sold in the U.S. in India, marking a pivotal change in its global supply chain strategy.
Apple’s Strategic Shift: Manufacturing iPhones in India
Apple CEO Tim Cook recently announced that a substantial portion of iPhones sold in the U.S. during the June quarter will be produced in India. This move underscores Apple’s efforts to diversify its manufacturing base and reduce reliance on China amid ongoing trade tensions.
Cook highlighted that this strategy aims to mitigate the impact of tariffs and align with the U.S. government’s “Made in America” initiative. By increasing production in India, Apple not only adheres to these policies but also strengthens its position in the global market.
The Rise of India as a Manufacturing Hub
India has emerged as a crucial player in Apple’s manufacturing landscape. Since 2017, Apple has been assembling iPhones in India through partnerships with contract manufacturers like Foxconn, Wistron, and Pegatron. This collaboration has significantly boosted India’s role in Apple’s global supply chain.
In fiscal year 2024, Apple assembled approximately $14 billion worth of iPhones in India, accounting for 14% of its global iPhone production. This growth is attributed to the Indian government’s Production-Linked Incentive (PLI) scheme, which encourages local manufacturing and export.
Economic Implications and Future Outlook
The decision to manufacture more iPhones in India has several economic implications. It not only creates job opportunities in India but also contributes to the country’s economic growth. Moreover, this move aligns with Apple’s strategy to mitigate risks associated with geopolitical tensions and supply chain disruptions.
Looking ahead, Apple plans to continue expanding its manufacturing footprint in India. The company aims to increase its production capacity and explore new product lines to be manufactured locally. This expansion is expected to further strengthen India’s position as a key hub in Apple’s global supply chain.
Apple’s decision to manufacture the majority of iPhones sold in the U.S. in India marks a significant shift in its global supply chain strategy. This move not only helps Apple navigate trade tensions but also underscores India’s growing importance in the tech giant’s manufacturing operations. As Apple continues to invest in India, the country’s role in the global tech industry is set to expand, bringing economic benefits and technological advancements to the region.
