Apple Seeks Made-in-India Batteries for iPhone 16

Apple Seeks Made-in-India Batteries for iPhone 16
Apple iphone

In the spheres of manufacturing, agro-industry, and the service sector, India has consistently aimed to achieve self-sufficiency in meeting the nation's requirements. In the current scenario, India not only stands as a self-sufficient nation but also as a crucial partner for numerous countries outsourcing their production needs. Numerous nations rely on India for diverse industries such as textiles, pharmaceuticals, and automobiles. Breaking into this trend, Apple has made headlines with its declaration of intent to source Made in India batteries for the much-anticipated iPhone 16.

 

Apple reportedly informs component suppliers to source the forthcoming iPhone 16 batteries from India and invest more in the Made in India initiative after having relied largely on China for the same for a good part of the last decade. “If all goes well with iPhone 16 battery supply, Apple plans to move more iPhone battery production to India,” one of the people close to the company was quoted as saying.

 

The company wants to see a significant production boost in iPhone production in India, targeting an increase from 7% in 2023 to 18% by the year 2025. The company is actively encouraging Chinese battery manufacturers to either establish new production facilities or expand their existing operations in India. Notably, prominent names such as Desay from China and Simple Technology, a Taiwanese battery supplier, have received directives to augment their production capabilities in India to meet the demands of upcoming orders. Moreover, according to Bloomberg news agency, Hon Hai Precision Industry Co., the manufacturer of iPhones, is reportedly intending to broaden its presence in India through an additional investment of $1.6 billion for various construction projects. In a recent announcement, IT Minister Rajeev Chandrasekhar revealed that Japan's TDX, a leading supplier of cells to Apple, will manufacture lithium-ion (Li-ion) battery cells for Apple in India. This development has the potential to create 8,000 to 10,000 jobs in the country.

 

This whole initiative aligns with Apple’s vision to move the manufacturing and supply chain dependence away from china. But why this shift? This shift can be linked to the growing tensions between Washington and Beijing and the visible Influence of china’s domestic policies on Apple’s manufacturing capacity. Over the past couple of years, Apple has been actively working to reduce its reliance on Chinese manufacturers for production. According to a Reuters report, the percentage of manufacturing handled by Chinese manufacturers decreased from 44-47% to 36% in 2021. This ongoing decline reflects Apple's deliberate efforts to diversify its manufacturing sources with countries like India and Vietnam. Notably, during the COVID-19 pandemic, China's domestic policies had a significant impact on Apple's iPhone production.

 

In addition to transferring certain manufacturing operations to India, the iPhone manufacturer has consistently worked towards expanding production in Vietnam as well.