July 19, 2024
Apple Plans Expansion of Manufacturing Operations in India
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Apple Plans Expansion of Manufacturing Operations in India

Jul 8, 2024

To bolster its manufacturing capabilities in India, Apple Inc. is set to resume preparations for iPad production and increase the manufacturing capacity of AirPods within the country. This decision comes amidst a favorable regulatory environment and government incentives aimed at strengthening domestic supply chains.

Sources familiar with the matter revealed that Apple is actively seeking new manufacturing partners and enhancing existing collaborations to facilitate its ambitious expansion plans. Previous attempts to partner with China’s BYD for iPad production faced regulatory hurdles, prompting Apple to explore new avenues for growth in India.

Encouraged by the Indian government’s proactive measures, Apple aims to capitalize on the evolving landscape by scaling up its operations significantly over the next few years. Since 2017, Apple has been assembling iPhones in India and plans to ramp up local production to manufacture a quarter of its total iPhones within the country by 2025.

Furthermore, Apple’s plans extend beyond iPads and iPhones. The tech giant has expressed intentions to explore manufacturing opportunities for laptops and desktops, aligning with its broader strategy to diversify production away from China. This move not only enhances Apple’s global supply chain resilience but also underscores its commitment to expanding its presence in key growth markets.

In a notable development, Apple is also preparing to commence production of AirPods, its popular wireless earphones, in India starting early next year. Trial production of AirPods’ wireless charging case components has already begun in Pune in collaboration with Jabil, an American contract manufacturing company. Plans are underway to involve Foxconn in similar manufacturing efforts, with a focus on meeting both domestic and export demands.

Analysts predict that Apple’s strategic initiatives in India will contribute significantly to its global production footprint diversification by 2025. With ambitions to reduce dependency on Chinese suppliers, Apple’s expansion in India not only augurs well for its business growth but also reinforces India’s position as a critical market in the tech industry’s global landscape.

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