6-12-2023 (CALIFORNIA) In a strategic move to diversify its global supply chain and reduce reliance on Chinese manufacturing, Apple has expressed its preference for the production of batteries for the upcoming iPhone 16 to be based in India. Sources close to Apple revealed that the world’s most valuable company has communicated this preference to its component suppliers.
According to insiders, battery manufacturers like China’s Desay have been encouraged to establish new production facilities in India. Simplo Technology, a Taiwanese battery supplier for Apple, has also been urged to scale up production in India for future orders. The shift aligns with Apple’s ongoing efforts to decentralize its manufacturing and supply chains, diminishing its long-standing dependence on China.
“If all goes well with iPhone 16 battery supply, Apple plans to move more iPhone battery production to India,” stated an individual familiar with the matter.
In a separate development, an Indian government minister announced that TDK, a Japanese supplier for Apple, is establishing a 180-acre facility in Manesar, Haryana, to manufacture battery cells for iPhones made in India. Rajeev Chandrasekhar, Minister of State for Electronics and IT, commended Apple, TDK, and local officials for contributing to the government’s objective of strengthening the electronics manufacturing ecosystem in India.
Companies like Desay and Simplo play a crucial role in the supply chain by packaging electric cells produced by TDK into modules, which are then sent to assemblers like Foxconn. Apple’s pursuit of sourcing batteries outside China complements the Narendra Modi government’s “Make in India” initiative, which offers incentives to companies investing in targeted sectors, including mobile phones and batteries.
While Apple has been gradually increasing production in countries like Vietnam and India over recent months, replicating the scale, speed, and quality of its Chinese operations has proven challenging. The move to source batteries from India underscores Apple’s commitment to diversifying its manufacturing footprint and mitigating risks associated with geopolitical uncertainties.
The iPhone 15, Apple’s latest model, was manufactured in both India and China by Taiwanese contract manufacturers Foxconn, Pegatron, and Wistron. Notably, Foxconn, Apple’s primary supplier, has announced plans to invest over $1.5 billion in a new production facility in India, reinforcing the company’s commitment to expanding its manufacturing presence in the country.
