Science & Technology

Apple Expands Manufacturing in India

Apple annual sales in India hit a record $8 billion, as one of the firm’s contract manufacturers is planning to assemble iPads in a local facility.

Apple Expands Manufacturing in India

As reported by the Economic Times, Apple is doubling down its stakes on India as the tech giant is striving to diversify its manufacturing processes from China.

In particular, Taiwanese contract manufacturer Foxconn is now planning to assemble Apple’s iPad in India at its facility in Tamil Nadu’s Sriperumbudur, along with iPhones already assembled there. Various ET sources suggested that the tech giant is also exploring the possibility of assembling its Pro and Pro Max iPhone models in India this year through Foxconn.

Foxconn is one of the biggest producers of Apple products. The Taiwan-based company is responsible for assembling approximately 70% of iPhones. Last year, it acquired a 300-acre land plot on the outskirts of Bengaluru to build a mega factory. While the project is still a work in progress, it is expected that the huge facility will be mainly used for iPhone manufacturing.

Media reports have also stated that Foxconn was planning to manufacture artificial intelligence (AI) servers at its facilities in India as part of its broader strategy to diversify beyond phones. In addition to Apple, Foxconn plays a key role in building AI servers for other global technology giants such as Amazon, Google, Microsoft, and Nvidia.

In addition to Foxconn, Corning, a key Apple’s supplier of Gorilla glass cover material, will launch production at its Tamil Nadu facility in the second half of 2025. Taiwan’s Foxlink, a supplier of iPhone charging cables, is also building a plant in Oragadam, near Chennai.

Besides, Apple has recently engaged in talks with the Murugappa Group and Titan Company to potentially start assembling its camera modules in India.

It is estimated that Apple’s ecosystem of component makers and suppliers in India could grow threefold to collectively employ around five lakh local citizens in the next three years.

Apple’s major shift to Indian manufacturing facilities has also boosted local sales. Remarkably, 2023 was a record year for Apple in India. It was the first time that iPhone shipments crossed the 10-million mark in the country, and Apple became the top brand in India in terms of revenue.

Last year, the tech giant’s revenue in India jumped 33% from $6 billion a year earlier. iPhones account for over half the local sales. Moreover, 99% of mobile phones sold in India are manufactured locally. Only select high-end models like iPhone Pro models are currently imported.

Local production finally enabled Indian citizens to purchase the new iPhone 15 product line on the same day the next generation of Apple smartphones appeared on the global market.

Apple’s increased interest in the Indian market is a sign that the government’s initiative ‘Make in India’ is ultimately paying off. The program’s objective is to promote India as the most preferred global manufacturing destination, create a favourable business and investment environment, and encourage global companies to develop, manufacture and assemble products in India.

Nina Bobro

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Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.