Tata Group to begin manufacturing Apple iPhones in India for domestic & global markets
Tata Group has announced plans to start manufacturing Apple iPhones in India aimed at domestic and global markets, marking a shift from Apple's previous China-centric strategy. This will make Tata Group India's first homegrown iPhone maker.
technology
Highlights
- Tata Group to start manufacturing Apple iPhones in India for both domestic and global markets
- The move marks a shift from Apple's previous strategy of selling mostly Chinese-made devices
- Tata Group becomes India's first homegrown iPhone maker
In a significant move, Tata Group has announced plans to commence the manufacturing of Apple iPhones in India. This strategic decision comes as a departure from Apple's previous reliance on Chinese production.
The Electronics and Technology Minister, Rajeev Chandrasekhar, shared this news, highlighting India's growing capabilities in electronics manufacturing. Tata Group is set to become the first domestic manufacturer of iPhones in India.
Government support for Indian electronics companies
Minister Chandrasekhar expressed strong government support for the growth of Indian electronics companies, emphasising India's potential as a trusted manufacturing partner for global electronic brands. This initiative aligns with Prime Minister Narendra Modi's vision to establish India as a global electronics powerhouse.
Acquisition of Apple supplier Wistron Corp
Tata Group has acquired the operations of Wistron Corp, an Apple supplier, for approximately $125 million. This acquisition was announced during a board meeting. Notably, Wistron's contribution to building a global supply chain in India with Indian companies at the forefront received recognition from the Union Minister.
The Impact of government incentives & Apple's diversification strategy
Prime Minister Narendra Modi's financial incentives, particularly the Production-Linked Incentive (PLI) scheme, have played a pivotal role in bolstering local manufacturing. This scheme aims to boost domestic production, job creation, and exports. It encompasses various sectors, including large-scale electronics manufacturing, textiles, medical devices, automobiles, and more. It has already positioned India as a major hub for smartphone manufacturing and exports.
Apple's diversification strategy, driven by the need to reduce reliance on Chinese manufacturing amid the Washington-Beijing trade tensions, has further enhanced India's significance in the global iPhone production landscape. Minister Chandrasekhar lauded PM Modi's visionary PLI scheme for this achievement.
A promising future for iPhone production in India
Earlier this year, Union Commerce and Industry Minister Piyush Goyal revealed that Apple had exported goods worth $5 billion from India in 2022. Furthermore, Apple plans to produce 25 percent of its global units in India over the next four to five years. This development marks a culmination of about a year of negotiations, as Tata Group ventures into electronics production and e-commerce.
Tata Group's existing operations include the production of iPhone chassis, which forms the metal framework of the device, at a sprawling facility in Tamil Nadu. The conglomerate's diversification into electronics manufacturing positions India as a key player in global iPhone production.
India's growing prowess in electronics manufacturing, coupled with government support and strategic partnerships, is set to reshape the landscape of global electronics production, making it a reliable and dynamic hub for multinational companies like Apple.
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