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Tata Group, one of India’s largest conglomerate, is poised to double iPhone assembly in India within two years. Last week, Tata sealed the deal to acquire Wistron‘s iPhone assembly plant in India for $125 million. According to noted Apple analyst Ming-Chi Kuo, “in 2023, 12–14% of global iPhone shipments are made in India.” As per Kuo, if all goes well “the proportion of iPhones made in India will increase to 20–25% by 2024.”
This could a significant development for both Tata and Apple.For Tata, it represents a major foray into the technology sector. For Apple, it means that it will be able to reduce its reliance on China for iPhone production. The move is also seen as a boost for India’s manufacturing sector.
The Indian government has been making attempts to attract investment in the manufacturing sector. In recent years, it has introduced a number of reforms, including tax breaks and subsidies, to make it easier for companies to set up shop in India. The government has also been working to improve the country’s infrastructure, including its roads and ports.
Currently, Foxconn owns 75–80% of the iPhone production capacity in India. Kuo believes that the Tata Group’s acquisition of the Wistron plant will boos the assembly of iPhones in India. “This move will benefit future sales of iPhones and other products in India and is critical to Apple’s growth over the next decade,” Kuo said in a post on Medium.
Reducing the China dependency
Tata’s move is part of a broader shift by Apple to diversify its supply chain away from China. Apple has been looking to reduce its production dependence on China. Apple’s production was hit by disruptions caused by the COVID-19 pandemic. Apple has been facing increasing scrutiny over its supply chain, and the company is looking to diversify its manufacturing base.
Tata Group is also well-positioned to take advantage of the Indian government’s production-linked incentive (PLI) scheme for smartphones. The PLI scheme provides financial incentives to companies that manufacture in India. Tata is expected to invest heavily in Wistron’s iPhone plant to expand its capacity and upgrade its technology. The group is also likely to leverage its existing supply chain and logistics network to improve the efficiency of iPhone manufacturing in India.
This could a significant development for both Tata and Apple.For Tata, it represents a major foray into the technology sector. For Apple, it means that it will be able to reduce its reliance on China for iPhone production. The move is also seen as a boost for India’s manufacturing sector.
The Indian government has been making attempts to attract investment in the manufacturing sector. In recent years, it has introduced a number of reforms, including tax breaks and subsidies, to make it easier for companies to set up shop in India. The government has also been working to improve the country’s infrastructure, including its roads and ports.
Currently, Foxconn owns 75–80% of the iPhone production capacity in India. Kuo believes that the Tata Group’s acquisition of the Wistron plant will boos the assembly of iPhones in India. “This move will benefit future sales of iPhones and other products in India and is critical to Apple’s growth over the next decade,” Kuo said in a post on Medium.
Reducing the China dependency
Tata’s move is part of a broader shift by Apple to diversify its supply chain away from China. Apple has been looking to reduce its production dependence on China. Apple’s production was hit by disruptions caused by the COVID-19 pandemic. Apple has been facing increasing scrutiny over its supply chain, and the company is looking to diversify its manufacturing base.
Tata Group is also well-positioned to take advantage of the Indian government’s production-linked incentive (PLI) scheme for smartphones. The PLI scheme provides financial incentives to companies that manufacture in India. Tata is expected to invest heavily in Wistron’s iPhone plant to expand its capacity and upgrade its technology. The group is also likely to leverage its existing supply chain and logistics network to improve the efficiency of iPhone manufacturing in India.
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