Apple reportedly pivots India as iPhone production base with no near-term plan to make iPads and Macbooks there
Apple CEO Tim Cook, who has built China as Apple’s primary manufacturing base, is making efforts to reduce its reliance on China, with India being one of the major production hubs primarily for iPhones for the foreseeable future.
Bloomberg, citing people with knowledge of Apple’s plan, reported that Apple is diversifying away from China slowly so as not to provoke China’s retaliation and is trying to build India as the production location for iPhones and accessories, Vietnam for production of AirPods and Mac assembly, Malaysia for some Mac production, and Ireland for some simpler products. Apple also intends to decrease its reliance on chips that are made in Taiwan, which is more challenging than device-making.
According to the report, Apple has assembled hundreds of employees to form the so-called “tiger teams” to tackle the weaknesses in its supply chain, with the teams setting up shop in suppliers’ factories across countries to assess facility maintenance schedules and find backup suppliers for every component.
Despite India’s efforts to attract suppliers for MacBooks and iPads, sources told Business Today that manufacturing PCs and tablets in India is not on Apple’s roadmap for the next two to three years. They added that Apple is currently not making the Pro models of iPhones in India, and if Apple is really looking to expand its manufacturing base in India, it will first make the Pro model, instead of making a completely different product, such as MacBooks and iPads.
Still, Apple is aggressively expanding the production of iPhones, the product that accounts for about half of Apple’s sales, in India. According to Bloomberg, Apple made 6.5 million out of the 200 million iPhones in India in 2022 and plans to increase its iPhone production in India for 2023 to 10 million, potentially reaching more than 15 million units in 2024.
