Apple’s Big Shift Sourcing iPhone 16 Batteries from India

In a significant turn of events, Apple has expressed its intention to source batteries for the upcoming iiPhone 16 Batteries from Indian factories. This move, as reported by the Financial Times, signifies a notable shift in Apple’s manufacturing strategy, which for the past decade largely centered around China.

The Economic Times highlighted on Tuesday that Apple is actively seeking new suppliers, primarily from India, Japan, and South Korea. These suppliers are expected to play a critical role in providing essential components to Apple’s contract manufacturers in India.

This strategic decision aligns with Apple’s plans to commence the production of the iPhone 15 Plus in the upcoming quarter. It follows the successful initiation of production in India for the lower-priced base model of the series, as reported by ET in September. This development marked a pivotal moment for Apple, as it was the first instance of an iPhone assembled in India being available for sale immediately at launch.

The commencement of the iPhone 15’s commercial production at Foxconn’s Chennai plant in September underlines Apple’s growing focus on diversifying its manufacturing bases. This diversification is not only a response to the increasing tensions between Washington and Beijing but also a recognition of India’s burgeoning potential in the technology sector.

Apple’s market share in India’s rapidly expanding smartphone arena is a testament to its growing influence. From a modest 1% share in 2019, Apple has impressively increased its foothold to 5%. Analysts from Counterpoint Research suggest that Apple might even double this share to 10% in the coming year.

The journey to this remarkable growth in India has been fueled by strategic moves such as local iPhone manufacturing since 2017. This local production has not only made iPhones more affordable by circumventing import tariffs but has also been complemented by the establishment of Apple stores in key Indian cities like New Delhi and Mumbai.

In a related development, Bloomberg reported that iPhone manufacturer Hon Hai Precision Industry Co. is planning to expand its operations in India with a substantial $1.6 billion investment in construction projects.

On a broader scale, India’s export sector has seen a significant boost, particularly in the electronics segment, with the shift of major companies like Samsung and Apple from China. Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi remarked on the exponential growth in exports, especially in mobile phones and IT hardware, positioning these sectors as future high-export commodities.

Apple’s decision to source iPhone 16 batteries from India is more than a business strategy; it’s a nod to India’s growing prominence in the global technology landscape. This move not only benefits Apple through diversification and cost-effectiveness but also boosts India’s stature as a key player in the international tech industry.