Apple is making a significant move to diversify its supply chain by shifting iPhone 16 battery production from China to India. This decision aligns with the company’s broader effort to reduce its reliance on China and expand its manufacturing capabilities in other countries. (via. Financial Times)
The tech giant has reportedly informed its battery suppliers, such as Desay and Simplo Technology, of its preference to source batteries for the upcoming iPhone 16 from Indian factories. Additionally, Apple has encouraged these suppliers to establish new factories in India or scale up their existing operations to meet the anticipated demand.
This shift in battery production is part of Apple’s larger strategy to move away from China, which has been its primary manufacturing hub for years. Growing trade tensions between the United States and China have prompted Apple to seek alternative locations for its supply chain, and India has emerged as a promising destination.
Foxconn, Apple’s biggest supplier, invested more than $1.5 billion in a new production facility in India. This investment will expand Foxconn’s manufacturing presence in India and also support Apple’s efforts to shift iPhone production away from China. The Tata Group, India’s largest conglomerate, has also signed a deal with Apple to assemble iPhones in India.
The Indian government has been actively promoting its “Make in India” initiative, offering incentives to companies willing to invest in the country’s manufacturing sector. This initiative has attracted Apple’s attention, and the company is now exploring opportunities to expand its presence in India.
In addition to the battery production shift, Apple has also been ramping up iPhone production in Vietnam. The company aims to reduce its dependence on China while maintaining its global manufacturing capabilities.
While Apple has achieved some success in diversifying its supply chain, replicating the scale and efficiency of its Chinese operations has proven challenging. However, the company remains committed to its efforts to reduce its reliance on China and expand its manufacturing footprint in other countries.