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Since the very beginning, China has been the center of global iPhone production. The combination of low wages, abundant labor and an efficient supply chain make China the choice for low-cost device production. But according to the Wall Street Journal, Apple now plans to move 25% of iPhone production to India in the next 2-3 years.
Starting in April 2024, as many as 20 million iPhones will be produced in India using factories owned by Foxconn. This figure is expected to increase to 50 million iPhones per year within three years. India became Apple's second iPhone manufacturing center due to issues during the pandemic. Reliance on a single production center in China creates issues of stock shortages and increased costs. Uncertainty due to the trade war between China and the United States is also a factor that India is now an option.
Apple began manufacturing iPhones in India four years ago under the Make In India scheme to boost local technology expertise. Various incentives are given to investors to manufacture their products in India. Initially only less premium models were manufactured before the iPhone was also released in India this year.