In its goal to diversify the supply chain, a new report says Apple plans to produce 25% of iPhones in India in the next two to three years, making the country manufacture more than 50 million iPhones annually.
That said, China would still remain the largest iPhone producer as Apple relies on the existing supply chain to develop and manufacture new technologies for its latest iPhone models.
According to The Wall Street Journal, this increase in production will be possible thanks to Foxconn constructing a new plant in the southern state of Karnataka, which should start operating in April. The plant is expected to manufacture up to 20 million handsets annually, mainly iPhones, within the next two to three years. In addition, a new mega plant is also in the early stages to be built in the region, which could double the capacity of this site.
“Combined with plans for expanded production at an existing Foxconn plant near Chennai and at another existing plant recently bought by Indian conglomerate Tata, these developments signify that Apple intends to have the capacity to make at least 50 million to 60 million iPhones in India annually within two to three years,” said people involved in the planning to WSJ.
Although Apple’s relationship with China will continue for years, Cupertino is trying to diversify its supply chain for two reasons: the ongoing geopolitical tension between the US and China and the issue of solely relying on one place.
With the iPhone 14 Pro release, the largest iPhone factory in China not only went into lockdown mode due to rising cases of COVID-19 but also, right after that, a riot shut the facility. With that, Apple couldn’t deliver its latest iPhones in time, and many users could only get them after the holiday season.
After that, Apple is trying to prevent something similar from happening again at all costs.