Electronics giant Apple Inc. is doubling down on its make-in-India narrative by increasing the production capacity in the country. This is a major departure from the company’s decades-long dependence on China. United States-China trade tensions continue to expand. In turn, businesses are looking to reduce risk by diversifying their supply chains. After all, Apple is worth more than $3 trillion (€2.7 trillion) and has invested deeply into China over the years. The company has constructed large-scale manufacturing operations across the country.
The tech giant has established an advanced production line in China. This plant, in Zhengzhou known as “iPhone City,” is where most of the company’s iPhones are assembled. Other plants are in larger cities including Wuhan, Shenzhen, Kunshan as well as Beijing, Tianjin, Huizhou and Guangzhou. These sprawling factories have helped Apple keep an intricate assembly process supercharged, one that’s key to producing its now-famous devices.
Apple is doing a lot to remove upstream risks in its supply chain. The company has been at the forefront of expanding its manufacturing base in India. The company has been working directly with contract manufacturers such as Foxconn and Tata Electronics. In fact, they’re already setting up production bases in the pro-manufacturing southern Indian states of Karnataka and Tamil Nadu. Cities like Bangalore are emerging as new centers of gravity for Apple’s manufacturing strategy.
This is particularly the case as trade tensions rise and Apple no longer wants to be so reliant on Chinese manufacturing. The company is planning to strengthen its business in India and is looking at developing its presence in Indonesia. This strategic pivot helps Apple better balance global demand. Furthermore, it guards the U.S. supply chain from growing threats of disruptions due to geopolitical factors.
Expect to see Apple significantly increase investment in its Indian factories to meet booming consumer demand, analysts advise. The U.S. government has recently expressed interest in rolling back some of these punitive tariffs on Chinese goods. These proposed amendments put Apple at a crossroads that could affect how the company operates as early as next year.
Apple’s move to expand its presence in India represents a broader trend among multinational companies seeking to diversify their supply chains. The opportunity for expanded manufacturing capabilities in India has the potential to upend the tech ecosystem across South Asia. Apple’s production push is largely about locking in its competitive advantages. This approach allows the firm more flexibility to adjust to the rapidly shifting conditions of international trade relations.
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