As Covid lockdowns and increasing geopolitical tension have strained the crucial supply chains of Apple in China and the company is now focusing on securing the supply chain, India is emerging as a potential alternative to the second largest economy of the world.
Last month, India’s Minister of Commerce and Industry Piyush Goyal had said that the company is planning to increase its production in the country to a quarter of its total manufacture.
Goyal said that Apple is already manufacturing 5 per cent to 7 per cent of its products in India. “If I am not mistaken, they are targeting to go up to 25 per cent of their manufacturing,” he stated while speaking at an event.
The comments were made by the minister at a time when Apple’s top supplier, Foxconn (HNHPF), is planning the expansion of its operations in India after it suffered severe disruption in supply from China.
Apple has depended on its vast manufacturing network in China for years to produce iPhones, iPads and other products on a mass scale.
However, its dependence on China was tested last year after the zero-Covid policy in Beijing dramatically hit the supplies.
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Since last year, Apple has increased its efforts to push its investments in India. Market research firm Counterpoint’s research director Tarun Pathak said, “Theoretically, it can be done, but it won’t be happening overnight.”
“(Apple’s) dependency on China is a result of almost two and a half decades of what China put in to develop their entire electronics manufacturing ecosystem,” said Pathak, adding that currently, the company is manufacturing 95 per cent of its phones in China.
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