Apple ramps up India push as suppliers expand investments: Report
In a significant development, Apple’s major suppliers in India are rapidly increasing their local footprint as the firm moves to diversify its supply chain beyond China. According to a report by Economic Times, some vendors are enlarging factories, others have started trial production, and several have begun exports from new units. This comes as Apple reported record $10-billion in iPhone exports from India in the first half of FY25.
The move is seen as a strategic one by Apple, as it seeks to reduce its dependence on China, which has been its primary manufacturing hub for years. The company has been facing challenges in China, including rising labor costs, strict COVID-19 regulations, and geopolitical tensions. As a result, Apple has been exploring alternative manufacturing destinations, and India has emerged as a key player in its plans.
Several of Apple’s major suppliers, including Foxconn, Wistron, and Pegatron, have already set up manufacturing facilities in India. These suppliers have been expanding their operations in the country, with some of them investing heavily in new factories and equipment. For instance, Foxconn, which is Apple’s largest supplier, has been ramping up production at its factory in Sriperumbudur, near Chennai. The factory, which was initially set up to manufacture iPhones for the domestic market, has now started exporting iPhones to other countries.
Wistron, another major supplier, has also started trial production at its new factory in Narasapura, near Bengaluru. The factory, which is expected to become operational soon, will manufacture iPhones and other Apple products. Pegatron, which is a relatively new entrant in India, has also started setting up its manufacturing facility in the country. The company has acquired a large plot of land in Chennai and is expected to start production soon.
The expansion of Apple’s suppliers in India is seen as a major boost to the country’s manufacturing sector. The Indian government has been actively promoting the country as a manufacturing destination, offering various incentives and subsidies to companies that set up factories in the country. The government’s “Make in India” initiative, which was launched in 2014, aims to promote India as a manufacturing hub and create millions of jobs in the sector.
The record $10-billion in iPhone exports from India in the first half of FY25 is a significant milestone for Apple and its suppliers. It demonstrates the company’s commitment to India and its potential as a manufacturing destination. The exports are also expected to contribute significantly to India’s economy, with the government expecting the country’s electronics exports to reach $100 billion by 2025.
The growth of Apple’s suppliers in India is also expected to create thousands of jobs in the country. The manufacturing sector is a major employer in India, and the expansion of Apple’s suppliers is expected to create new job opportunities in the sector. The jobs will not only be limited to the manufacturing facilities but will also be created in the surrounding areas, with the development of new infrastructure and services.
In addition to creating jobs, the expansion of Apple’s suppliers in India is also expected to promote the development of the country’s electronics ecosystem. The presence of major suppliers like Foxconn, Wistron, and Pegatron is expected to attract other companies to the country, creating a robust electronics ecosystem. The ecosystem will not only promote the development of new technologies but will also provide opportunities for Indian companies to partner with global players.
In conclusion, the expansion of Apple’s suppliers in India is a significant development that demonstrates the company’s commitment to the country. The growth of the manufacturing sector in India is expected to create thousands of jobs and promote the development of the country’s electronics ecosystem. As Apple continues to diversify its supply chain beyond China, India is expected to play a key role in the company’s plans. With the government’s support and the presence of major suppliers, India is poised to become a major manufacturing hub for Apple and other global companies.
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