Apple and Tata Group plan to manufacture over 50m iPhones annually in India

Apple, in collaboration with its suppliers, has set an ambitious target to manufacture more than 50 million iPhones annually in India within the next two to three years. Tata Group, a major conglomerate, is supposed to build one of India’s largest iPhone assembly plants in Hosur, Tamil Nadu, as part of Apple’s broader strategy to bolster manufacturing in the country.

The proposed factory in Hosur is expected to house around 20 assembly lines and provide employment to approximately 50,000 workers within two years, sources familiar with the matter revealed. While the facility is anticipated to be operational in 12 to 18 months, the conglomerate aims to significantly contribute to Apple’s localization efforts and enhance its partnership with the tech giant. Tata Group already operates an iPhone factory in Karnataka, acquired from Wistron Corp, emphasizing Apple’s shift away from China by diversifying its manufacturing operations across countries like India, Thailand, and Malaysia.

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The move aligns with Apple’s broader plan to localize its supply chain and reduce dependence on Chinese manufacturing. The Cupertino-based company, known for its iPhone production, is strategically working with global assembly and component manufacturing partners in different regions.

The conglomerate has accelerated hiring at its existing facility in Hosur, focusing on iPhone enclosures or metal casings. Additionally, Tata has announced plans to launch 100 retail stores exclusively dedicated to Apple products. In parallel, Apple has initiated its retail expansion in India, with two stores already operational and three more in the pipeline.

Apple’s increased focus on manufacturing in India is partly attributed to Prime Minister Narendra Modi’s production-linked subsidies, which have encouraged key suppliers like Foxconn Technology Group and Pegatron Corp to scale up their operations in the country. This strategy has enabled Apple to assemble iPhones worth over $7 billion in India during the previous fiscal year, elevating the country’s share in the device’s production to approximately 7%. Previously, the majority of iPhones were assembled in China.