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Business News/ Companies / News/  Apple informs suppliers it will source iPhone 16 batteries from India: Report
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Apple informs suppliers it will source iPhone 16 batteries from India: Report

Apple has actively worked on diversifying its supply chain and relocating a significant portion of its production outside of China. In the next 4-5 years, the iPhone maker plans to scale up production in India by over five-fold to around ₹3.32 lakh crore, as per government sources.

Approximately 12-14 percent of iPhones distributed worldwide are manufactured in India (AFP)Premium
Approximately 12-14 percent of iPhones distributed worldwide are manufactured in India (AFP)

Apple has told its parts suppliers that it wants to get batteries for the upcoming iPhone 16 from factories in India, as per a Financial Times report.

Shift towards India

Earlier in November, Analyst Ming-Chi Kuo, as reported by MacRumors, suggested that Apple may initiate the assembling of the iPhone 17 in India, marking the first instance where the company will undertake iPhone development outside of China.

Also Read: Apple’s manufacturer Luxshare moves investment worth $330 Mn to Vietnam instead of India amid rising political tensions

The New Product Introduction (NPI) is a comprehensive process spanning from product conception to mass market production. Apple has traditionally entrusted this process solely to its Chinese manufacturing plants, but this may be changing.

Additionally, the report highlights that approximately 12-14 percent of iPhones distributed worldwide are manufactured in India, as mentioned earlier. The choice to produce the iPhone 17 in India is attributed to its "simplified design," which is expected to reduce potential complications in the development phase.

Kuo mentioned, "Apple has the opportunity to enhance its ties with the Indian government. This strategic step will have a positive impact on the prospective sales of iPhones and other Apple products within the Indian market, playing a pivotal role in Apple's growth over the forthcoming decade."

Also Read: Mint Explainer | What has changed for Apple in India?

Recently, Apple has been actively working on diversifying its supply chain and relocating a significant portion of its production outside of China.

In the next 4-5 years, iPhone maker Apple has plans to scale up production in India by over five-fold to around $40 billion (about 3.32 lakh crore), government sources told PTI.

According to the report, the firm has crossed the $7 billion production mark in the last financial year.

"Apple has plans to increase production in India to over $40 billion in the next 4-5 years. It has crossed $7 billion in the last fiscal," the official said.

Apple's performance in the Indian market

The net profit of Apple India jumped by 77% YoY to 2,230 crore in FY 2023 against 1,263 crore in FY'2022. The iPhone maker's net revenue increased by 48 percent to 49,322 crore in the previous financial year against 33,381 crore in the FY 21-22, reported PTI referring to data provided by business intelligence firm Tofler.

In October it was reported that Apple is nearing $10 billion in annual revenue from India by the end of the year, marking yet another milestone in the country it considers strategically important. India revenue estimates, as shared by sector experts with Mint, come on the back of a massive 47.8% growth in sales to 49,321 crore, or $5.9 billion, and strong profitability growth in India, as per data from its filing with the Registrar of Companies (RoC).

All signs indicate a promising future for Apple in India. Its sales have been steadily increasing and at almost three times the average price of a phone sold in India. With a relatively small user base, industry insiders believe there is ample room for growth.

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Published: 06 Dec 2023, 12:09 PM IST
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