The move is part of Apple’s gradual diversification from China, as it looks to lower the risk of supply chain disruptions stemming from the country’s strict zero-Covid policy and tensions with the US, the report said.
According to Nikkei, Luxshare Precision Industry and its affiliates, which already produce AirPods in Vietnam and China, also plan to help Apple make the popular wireless earphones in India.
Apple is trying to make India a strategic production base, with exports intended for European and Middle East markets.
According to a Bloomberg report, Apple Inc’s iPhone exports from India crossed $1 billion in the five months since April 2022.
At the current rate, outbound shipments of India-made iPhones, mainly to Europe and the Middle East, are set to reach $2.5 billion in the 12 months through March 2023, the report said. That’s almost double the $1.3 billion worth of iPhones India exported in the year through March 2022, the people said, asking not to be named as the data isn’t public.
While India makes up just a small fraction of iPhone output, rising exports bode well for Prime Minister Narendra Modi’s plan to make the country an alternative to China as factory to the world.
India plans to spend $30 billion to further strengthen its electronics supply chain, from semiconductors and materials to displays and electronics manufacturing, to attract more investment.
(With inputs from agencies)
