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Tata Group is predicted to produce the iPhone 15 and iPhone 15 Plus in India. Despite Apple’s efforts to lessen its reliance on China, news of new cooperation with Tata Group has surfaced. The media has reported that the company has signed a contract with Apple to produce the phones.
A shift from China to India
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This is a part of Apple’s efforts to spread its supply chains out from China and diversify its revenue streams. According to Taiwanese market intelligence firm TrendForce research, ” Apple has been accelerating the diversification of its supply sources due to geopolitical and pandemic. Apple eyes India as the most well-known case of such transfer.”
If the rumours are accurate, Tata will join Wistron, Foxconn, and Pegatron as Apple’s four manufacturing partners in India. Tata recently acquired the iPhone manufacturing facility of Wistron in India.
The partnership between a Major player and Apple
Apple focused on Tata because it is a major player in the Indian market. Tata reportedly got “only small orders” for the iPhone 15 and 15. However, how many devices will be produced in India is still being determined. According to the TrendForce study, “new suppliers receive smaller orders for lower-end models, following Apple’s pattern.”
Apple’s first-ever brick-and-mortar stores have just lately opened in Delhi and Mumbai. CEO Tim Cook has previously described India as an “incredibly exciting market” and a “major focus” for Apple.
Cook said a “tipping point” has been reached in India on the company’s Q2 earnings call. Regarding the Indian market, we can say that we achieved a new quarterly high and year-over-year growth in the double digits. Taking a step back, “India is an incredibly exciting market,” Apple’s CEO noted. Thus, it was quite a successful quarter for the company.
New Collaboration with Tata
TrendForce claims that Apple will contract with the Tata Group to produce iPhones in India. The next-generation iPhone 15 and iPhone 15 Plus will reportedly be produced by Tata Group first. India is the most visible example of Apple’s efforts to diversify its supply sources in response to geopolitical and pandemic risks. TrendForce predicted that India’s Tata Group would become Apple’s fourth iPhone assembler.
According to the source, India would be the first to receive shipments of the next iPhone series because Apple may contract with Tata Group, the largest conglomerate in India. Wistron’s exit from the iPhone assembly business can be directly related to Tata’s acquisition of Wistron’s Indian production line.
In the End…
Due to diplomatic tensions between Washington and Beijing and supply chain interruptions created by tight Covid laws, Apple reportedly plans to shift its device and component production away from China, with India playing an increasingly key role in this transition. While only 1% of iPhones were assembled in India in 2021, that figure has risen to 7% in the past year. iPads and iPods could soon emerge from an Apple factory in India.
