Apple Suppliers Plan Major Production Move to India

An unspecified Apple supplier is planning to move a significant amount of production operations to India, according to The Times of India.

The unnamed Apple contract manufacturer is expected to shift six production lines in total, with the aim of accommodating the export of $5 billion worth of devices from India. Establishment of a new facility for these new Indian production lines is expected to generate employment for around 55,000 workers over the period of a year. It will begin manufacturing iPhones, but may expand to other devices in the coming years.

Apple suppliers Wistron, Pegatron, Foxconn, and Samsung, are all expected to set up production facilities in India. These vendors are expected to be joined by Indian vendors Dixon Lava and Micromax in supplying Apple.

Foxconn announced last month that it was planning to invest as much as $1 billion in India, and has already established its first manufacturing plant in India. Last month, Apple started making iPhone 11 at the Foxconn plant in India. This was the first time a top-of-the-line model was been manufactured in the country.

Many companies are planning to diversify their supply chains in an effort to reduce dependence on China, which has come under increased scrutiny amid the global health crisis and trade war with the United States.

The Indian government has motivated production with the "production-linked incentive" (PLI) scheme, designed to attract companies with large-scale requirements for electronic components and semiconductors. The government has pledged up to six percent of costs of locally produced goods over the next five years. 22 companies from various countries, including Taiwan, South Korea, and Germany, have already applied to the PLI scheme. There have been no applications from Chinese companies. The scheme has already exceeded the government's manufacturing revenue target.

India is the second-largest smartphone market, but Apple has generally struggled to establish a substantial foothold in the country in the past. Apple almost entirely sells China-made devices‌ in India, but increasing local production would take advantage of the government's "Made in India" initiative, which could see Apple save as much as 22 percent on import duties and give it the option to reduce prices. Should Apple's supply chain expansion into India be successful, it may begin using the country as an "export hub."

Top Rated Comments

(View all)
Avatar
8 weeks ago
Finally Thinking Different.
Score: 22 Votes (Like | Disagree)
Avatar
8 weeks ago
Love this divestment in China.
Score: 13 Votes (Like | Disagree)
Avatar
8 weeks ago
This is great news, and will provide lots of jobs for Indians as well as make the world less dependent on just one country. Not good to put all your eggs in one basket. The world's a big place, share the manufacturing love.
Score: 10 Votes (Like | Disagree)
Avatar
8 weeks ago
Supply chain diversification at it's best. You don't want to be in China if/when they invade Taiwan.

China's been inward focused for so long that the Chinese media believe that the South China Sea takeover and the Hong Kong takeover are "defensive." They'll probably believe the same when they invade Taiwan. "We were forced to do it."
Score: 9 Votes (Like | Disagree)
Avatar
8 weeks ago


The manufacturing is directed for selling to India, not necessarily export from India. Look at the last couple of years of Oppo phones news related to selling phones in India. This is a another huge market that Apple wants take on.

Only to begin with. Apple however is incredibly far-sighted, and China will implode over the course of the coming decades, by which time Apple will have a global manufacturing hub in India for export, not only for the domestic Indian market. They were test driving the QC over the past few years by assembling the cheaper old models in the Indian plant, and are now ready for large scale commercial production of current model iPhones.
Score: 9 Votes (Like | Disagree)
Avatar
8 weeks ago
Totally makes sense. Apple learned its lesson by only operating in China.
Score: 7 Votes (Like | Disagree)

Top Stories

'iPhone 12 mini' Name Reappears in Leaked Apple iPhone 12 Case Stickers

Friday September 25, 2020 1:58 am PDT by
Earlier this week a proven leaker claimed that the iPhone 12 lineup would be named "iPhone 12 mini," "iPhone 12," "iPhone 12 Pro," and "iPhone 12 Pro Max," and today the same nomenclature has appeared again in a photo depicting alleged stickers from unreleased Silicone iPhone cases originating from Apple's international distribution center in Ireland. The photo shows three stickers with the...

New Images Leak of iPhone 12 Braided USB-C to Lightning Cable

Thursday September 24, 2020 2:37 am PDT by
Rumors suggest Apple's upcoming iPhone 12 models will ship with a new Lightning to USB-C cable that includes a braided fabric design. Images of the purported cables were leaked in July, and today leaker Mr White has shared new images that give us a closer look at what we might get included in the iPhone 12 box. The photos show a USB-C to Lightning cable with a clearly braided design rather...

New Version of Microsoft Office Coming Next Year That Won't Require a Subscription

Thursday September 24, 2020 1:53 am PDT by
Microsoft will next year offer a new perpetual release of Microsoft Office for Mac and Windows that doesn't require a subscription to use, according to the software giant (via Windows Central). "Microsoft Office will also see a new perpetual release for both Windows and Mac, in the second half of 2021," said Microsoft in a blog post announcing the next version of its Exchange server,...

Apple Releases iOS 14.0.1 With Fix for Bug That Resets Default Apps After Rebooting

Thursday September 24, 2020 10:12 am PDT by
Apple today released iOS 14.0.1, the first update to the iOS 14 operating system that was released on September 16. Today's update is a bug fix update addressing issues that weren't able to be fixed in the initial iOS 14 launch. The iOS 14.0.1 update is available on all eligible devices over-the-air in the Settings app. To access the new software, go to Settings > General > Software Update. ...

Apple's iPhone 12 Event Could Happen on October 13 Based on Rumors From Mobile Operators

Wednesday September 23, 2020 11:51 am PDT by
Apple's upcoming iPhone-centric event could perhaps be held on Tuesday, October 13, according to information shared with MacRumors by an employee at a UK cellular carrier. There's no way for us to confirm the dates at this point in time nor are we sure on the credibility of the source, but even without a rumor, Tuesday, October 13 is a good guess based on Apple's historic launch timelines, ...

Apple Releases macOS Catalina 10.15.7 With Fixes for WiFi Bug, 27-Inch iMac Graphics Issues

Thursday September 24, 2020 10:32 am PDT by
Apple today released macOS Catalina 10.15.7, the latest update to the macOS Catalina software. macOS Catalina 10.15.7 fixes several major bugs that Mac users have been experiencing, and it comes a month after the latest macOS Catalina release. The ‌‌‌macOS Catalina‌‌‌ 10.15.6 Supplemental Update can be downloaded from the Mac App Store using the Update feature in the System...

Apple Designs Custom Face Mask for Corporate and Retail Employees [Updated with Unboxing]

Wednesday September 9, 2020 11:13 am PDT by
Apple's design team has created a new kind of protective mask that's being distributed to retail and corporate employees, reports Bloomberg. The mask is called the Apple Face Mask and it was developed in-house in Cupertino by the Engineering and Industrial Design teams at Apple. Last week, an Apple employee sent MacRumors an image of the mask design, which can be seen up above. The Apple ...

Video Offers Closer Look at Apple Face Mask

Friday September 25, 2020 5:25 am PDT by
YouTube channel Unbox Therapy has today shared a new video giving a closer look at Apple's reusable face masks for corporate and retail employees. Apple's own face mask was designed by the company's Engineering and Industrial Design teams amid the global health crisis for corporate and retail employees, and the boxes include Apple's famous "Designed by Apple in California" text. The...

Top Stories: iOS 14 Feature Tour, 'iPhone 12 mini' Rumors, Apple Watch Band Controversy

Saturday September 26, 2020 6:00 am PDT by
Things started to calm down a bit this week following last week's rush of media event, Apple Watch and iPad launches, and the release of iOS 14 and other operating updates. But that doesn't mean there wasn't still a lot of news, from digging deeper into iOS 14 to more iPhone 12 rumors to the uproar over trying to exchange band sizes on the new Apple Watch. On top of all of that, we heard...

Interest in iOS 14 Home Screen Ideas Helps Pinterest Break Daily Download Record

Wednesday September 23, 2020 4:37 am PDT by
Apple's introduction of widgets on the Home Screen in iOS 14 has driven a surge in interest among users looking to customize their iPhone, and that has reportedly had a knock-on effect for Pinterest, whose iOS app has seen record downloads as users flock to its content seeking design inspiration. As reported by TechCrunch, App Store intelligence firm Apptopia was first to note the impact of ...