Apple is strengthening its footprint in India with more local production, growth in product availability, and new product launches specific to the market. As ongoing geopolitical tensions with China are reconfiguring the global supply chain, Apple finds itself strategically well-positioned to move more of its manufacturing, especially for the U.S market, to India.
One of the most intense priorities of this transformation is the local production of iPhone bodies or cases. While Tata Electronics has already been domestically producing these cases, Apple's biggest contract manufacturer, Foxconn, will also get into this now. In a report by The Economic Times, Foxconn would be setting up a special unit in the ESR complex in Oragadam, Tamil Nadu, to produce metal iPhone enclosures.
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This is a highly important addition to the Indian production base of Foxconn. The firm is already producing iPhones in its Sriperumbudur facility and producing AirPods in Hyderabad. It even has a new iPhone factory under plan close to Bengaluru. But this would be its maiden entry into producing iPhone enclosures here. Industry estimates its contribution at around 2–3 percent of the domestic value contribution of iPhones made in India, which is a small but significant proportion that could have tremendous implications on velocity, logistics, and exportability.
The company is looking to double local production of the plastic casing for AirPods, which would be exported to China and Vietnam for assembly and shipment. For this, Apple vendor Jabil is establishing a new facility in Tiruchirappalli in Tamil Nadu, in addition to its current AirPods casing factories in Pune.
The same location will also have another unit built solely for manufacturing iPhones, as previously mentioned report and display modules, further cementing India's place in Apple's international supply chain.
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