During a recent episode of CNBC Tech’s “Beyond the Valley” podcast, Apple CEO Tim Cook’s comments about India being at a tipping point and the growing middle class were discussed. Cook’s remarks shed light on Apple’s aggressive push to expand operations in India, a country with a large population and a burgeoning middle class eager to invest in high-end phones.
Apple has not only focused on increasing sales in India but has also bolstered its manufacturing presence in the country through Foxconn, the Taiwanese firm that assembles iPhones. According to a recent Bloomberg report, Apple now produces around 14% of its iPhones in India, a significant increase from previous years. The Indian government has even suggested that Apple aims to manufacture 25% of all its iPhones in India in the future.
This move by Apple has raised speculation among investors about whether India could become the next China for the tech giant. The decision to diversify its manufacturing base comes after disruptions in Chinese production due to the Covid-19 pandemic, prompting Apple to rethink its reliance on one country for manufacturing.
While Apple is not looking to completely move away from China, it is exploring opportunities in countries like India and Vietnam to reduce risk and ensure a stable supply chain. However, the process of shifting manufacturing operations is complex and requires overcoming challenges such as local regulations, workforce expertise, and scaling production to match China’s capabilities.
In India, Apple has made significant progress in increasing its iPhone production, but the question remains whether the country can handle the scale and speed of production needed to rival China. Apple’s goal is to avoid replicating its dependence on a single country by diversifying its manufacturing hubs. Ultimately, Apple aims to have 25% of its iPhones produced in India by 2030, highlighting the company’s commitment to building a resilient and diverse supply chain.