Apple To Source 25% of Its Manufacturing From India

Apple wants India to account for up to 25% of its production, up from 5%-7% currently, the country's trade minister said at a conference.

Following several disruptions last year caused by Beijing's now-dismantled zero-Covid policy, Apple has been shifting its manufacturing away from China.

“Apple, another success story,” Piyush Goyal said, pitching India as a competitive manufacturing destination. “They are already at about 5-7% of their manufacturing in India. If I am not mistaken, they are targeting to go up to 25% of their manufacturing. They launched the most recent models from India, manufactured in India.”

Goyal did not specify a deadline for Apple to meet the target. Apple did not respond immediately to a request for comment.

Apple, based in California, has placed a large bet on India since it began iPhone assembly there in 2017 with Wistron and later with Foxconn. The company's plans have aligned with the Indian government's push for domestic manufacturing.

Over the next two years, Foxconn plans to quadruple the workforce at its iPhone factory in India. In December, the Apple supplier announced a $500 million investment in its India unit to support the expansion of its manufacturing operations in the country.

The Indian electronics and information technology minister, Ashwini Vaishnaw, tweeted on Monday that Apple's exports from India had reached $1 billion in December.

Apart from China's Covid-related restrictions and lockdowns, rising trade and geopolitical tensions between Beijing and Washington have influenced Apple's plans to shift production elsewhere.

According to JP Morgan analysts, a quarter of all Apple products will be manufactured outside of China by 2025, up from 5% currently.