Apple has reached a significant milestone by introducing India-manufactured iPhones at their global launch, marking a pivotal step in the company’s efforts to expand its supply chain diversification.
According to a report by Bloomberg, the iPhone 15 will be available for purchase in India and various other regions concurrently with the models produced in China, representing the first instance of Apple releasing India-made iPhones in conjunction with their Chinese counterparts.
Although a majority of iPhone 15 units will continue to be manufactured in China, this development signifies a noteworthy advancement in Apple’s strategy to reduce its dependence on Chinese production. Apple initiated iPhone assembly operations in India in 2017 and has progressively scaled up production in the region over recent years.
Apple has set an ambitious target of manufacturing 25% of its iPhones in India by 2025. This objective is challenging but vital for Apple as it seeks to minimize supply chain vulnerabilities and potential disruptions.
This move to India is not just a strategic business decision; it also carries political implications. Apple’s aim is to circumvent the tariffs imposed by the Indian government on imported smartphones. By producing iPhones in India, Apple can sidestep these tariffs, ultimately making its products more accessible to Indian consumers.
Furthermore, the timing of this transition aligns favorably with Apple’s interests. India has witnessed a surge in nationalistic sentiments, resulting in some government bodies and consumers advocating for the boycott of Chinese goods. By localizing iPhone production in India, Apple can avoid entanglement in this controversy.
In sum, this development represents a positive stride for Apple, as it advances its supply chain diversification objectives, mitigates tariff-related challenges, and navigates potential political sensitivities in a critical market like India.
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