Apple Aims to Make 25 Percent iPhones in India: Piyush Goyal

Apple is aiming to manufacture 25 percent of its iPhones in India, Union Minister of Commerce Piyush Goyal said at a conference. He added that the Cupertino-based tech giant is already making anywhere between 5 to 7 percent of its total production volumes in the country. Goyal’s claim is consistent with the prediction of JP Morgan analysts last year, who also stated that Apple is planning to move 25 percent of iPhone production to India by 2025.

Apple to Target 25 Percent iPhone Production in India

Piyush Goyal hailed Apple’s focus on manufacturing in India as another success story. “If I’m not mistaken, they are targeting to go up to 25 percent of their manufacturing,” the minister remarked. However, the exact timeline detailing how Apple would reach the production target remains unknown. The company also did not comment on the statement.

Apple’s ambition to manufacture 25 percent of its iPhones in India comes as no surprise. The tech giant wants to diversify its production outside China due to the COVID-19 restrictions resulting from supply chain constraints and the rising geopolitical tensions between the competing superpowers-US and China.

Additionally, in November last year, Foxconn’s unit in Zhengzhou which is also the largest iPhone manufacturing unit in the world erupted in chaos as workers protested over the country’s zero-COVID policy and claims of overdue pay. The disruptions hit iPhone production by a whopping 30 percent, which in turn affected the company’s revenue forecasts as well.

Apple Bets Big on India

Apple has been betting big on India ever since it started assembling iPhones way back in 2017. The company has three contract manufacturers in the country including Foxconn, Wistron, and Pegatron. Foxconn has plans to quadruple the size of its operations in India over the next two years.

In November last year, Telecom and IT Minister announced that Apple’s largest manufacturing unit in the country is being built in Hosur, around 40 km away from Bengaluru. Additionally, Tata Group is also in talks with Apple’s Taiwanese supplier Wistron to assemble iPhones in India. The deal is expected to be completed by the end of March 2023.

The current generation iPhone 14 is the first iPhone model from Apple to be manufactured in India soon after its launch. Usually, the production cycle of previous iPhones was delayed by a quarter or two. Past reports suggest that the iPhone 15 will be manufactured simultaneously in India and China. The move will help Apple significantly reduce its dependency on China as it plans to diversify its production base.

This development comes hot on the heels of Apple becoming the first company in India to hit $1 billion (~Rs 8,100 crores) smartphone exports in a month. The milestone was achieved in December 2022

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