
Journalist Patrick McGee's book Apple in China highlights how India's iPhone production ramped up much more slowly than China's. Between 2016 and 2023, India produced 15 million iPhones, accounting for 7% of global shipments, whereas China, between 2006 and 2013, surged from zero to 153 million units—ten times India's pace.
A key reason is that India's role in Apple's supply chain is still largely Final Assembly, Test, and Pack (FATP), meaning most components are imported from China and assembled locally by partners like Wistron and Foxconn. This dependency limits India's ability to scale as rapidly as China did.
Apple has made progress—India now assembles flagship models, including the iPhone Pro, and distribution timelines have improved. However, full supply chain independence could take another 5–10 years, as India builds up infrastructure and local component sourcing.
McGee’s book, Apple in China, highlights both the loopholes and strengths in India’s iPhone manufacturing journey.
To start with, China's factories operate with highly optimized workflows, allowing rapid scaling. In contrast, India’s iPhone Production, as mentioned above, is still largely Final Assembly, Test, and Pack (FATP), meaning most components are imported from China. This dependency slows scaling efforts.
Unlike China’s deep manufacturing ecosystem, India lacks the same level of supplier clustering, making logistics more complex. Moreover, China builts a vast electronics manufacturing ecosystem over decades, while India is still developing its supply chain. Most components are imported from China, adding logistical complexity and costs.
Apple’s diversification into India hasn’t fully reduced reliance on China. The Shanghai lockdown in 2022 accelerated India’s role, but parallel operations have increased complexity rather than true supply chain independence.
Apple initially faced hurdles due to India’s 30% local sourcing requirement, which was relaxed in 2017 but still affects supply chain efficiency.
As of now, India has moved beyond entry-level models and now assembles iPhone Pro variants, matching China’s distribution timeliness.
Meanwhile, Apple’s $22 billion investment in India signals long-term commitment, with Foxconn and Tata playing key roles in scaling production. Apple aims to make India a full-fledged manufacturing hub, but experts estimate it could take 5–10 years before India reaches China's scale.
Rising US-China tensions and tariff policies make India a more attractive alternative for Apple’s supply chain diversification.
India’s expanding middle class and increasing iPhone adoption create a strong domestic market, encouraging further investment.
Foxconn’s recent $1.5 billion investment in India signals progress, but deep manufacturing (chips, displays, batteries) is still lacking.
India is making strides, but full-scale manufacturing independence could take another 5–10 years. It's an interesting case study, for the world to see, in manufacturing dynamics. Do you think India can eventually match China's scale, or will structural challenges persist? Do comment below....
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