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Apple builds 1 out of every 7 iPhones in India

By Shawn Tan - on 11 Apr 2024, 10:20am

Apple builds 1 out of every 7 iPhones in India

The Apple iPhone 15 and iPhone 15 Plus are made in India.

Apple reportedly hit another milestone in its diversification strategy for the iPhone supply chain. 

Bloomberg states that Apple has built $14 billion worth of iPhones in India. To put this figure into context, Apple now assembles about 1 in 7 iPhones from India. This is double the iPhone output in fiscal 2023.

Besides the iPhone 15 and iPhone 15 Plus, Apple has also been building iPhone 12, iPhone 13, and iPhone 14 models in India.

Apple started exploring the possibility of diversifying its iPhone supply chain in 2020. In the same year, Apple's main supplier of iPhones, Foxconn, invested $1 billion in India to build iPhones

The Wall Street Journal wrote in 2022 that Apple informed contract manufacturers to expand production outside of China, especially to India and Southeast Asia. That year, J.P. Morgan analysts predicted a quarter of iPhone production would shift to India by 2025

Apple's shift to India was not smooth sailing. Earlier last year, the Financial Times reported that Apple had issues scaling up iPhone production in India as only half the components assembled in the country could pass the company's quality standards.

Aside from the iPhone, Apple also diversified the supply chain for other products. It is said to have shifted 30% of AirPods production to Vietnam and expanded its supplier base of memory chips. Apple is also sourcing chips from an Arizona plant this year and considering Chinese display suppliers for the Vision Pro lineup.

Source: Bloomberg via MacRumors

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