Apple's expansion gains momentum with increased investments, stores, manufacturing initiatives

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Apple's expansion gains momentum with increased investments, stores, manufacturing initiatives

Apple's expansion gains momentum with increased investments, stores, manufacturing initiatives

Industry News
Dec 07,23

Reports indicate that the Sriperumbudur factory on the outskirts of Chennai is now actively involved in assembling the iPhone 15, which launched and went on sale in September.

Apple's expansion gains momentum with increased investments, stores, manufacturing initiatives

Since 2016, Apple Inc has been contemplating an expansion into India, a consideration that originated when CEO Tim Cook initially met with Prime Minister Narendra Modi. In a 2016 CNBC interview, Cook expressed his optimism regarding India's substantial market potential, underscoring Apple's bullish outlook on the country. This interest aligns with Apple's broader strategy of tapping into emerging markets and capitalising on growth opportunities beyond its traditional strongholds.

During his visit to India in April 2023, Cook not only pledged increased investments but also inaugurated two Apple Stores. Notably, reports indicate that the Sriperumbudur factory on the outskirts of Chennai is now actively involved in assembling the iPhone 15, which launched and went on sale in September.

The Cupertino-based tech giant is reportedly exploring collaborations with new suppliers, focusing on companies from India, Japan, and South Korea. The objective is to source crucial components, such as batteries, camera lenses, chargers, and other essential equipment required for iPhone and iPad production within India for its contract manufacturers.

In August, Moneycontrol reported Apple's active consideration of plans to expand domestic component manufacturing in India, shared during a meeting with high-ranking officials from the finance ministry. Apple's assertive approach in setting up manufacturing operations in India aims to diversify its supply chain beyond China.

The company plans to increase production capacity in India by over five times, reaching an estimated value of $40 billion (approximately Rs 3.32 lakh crore) in the next 4-5 years. The Tata Group is positioned to become the first Indian iPhone maker through its acquisition of the Indian unit of Taiwan-based Wistron Corp, a contract manufacturer for Apple, in a deal valued at $125 million.

Apple predominantly relies on contract manufacturers like Foxconn, Wistron, and Pegatron for local iPhone production in India. These manufacturers are integral to Apple's supply chain and manufacturing processes. The company manufactures nearly 7% of its iPhones in India by expanding partnerships and collaborating with local manufacturers, while its ecosystem of component suppliers, including Foxlink, Flex, Salcomp, Avary, Sunwoda, and Jabil, plays a crucial role in iPhone manufacturing.

Source: Moneycontrol News