Reducing dependence on Chinese suppliers has become one of Apple’s strategic goals in recent years, and this is not even about geopolitical risks, but about banal economic realities. By next year, when the iPhone 16 family of smartphones is set to launch, the company expects to increase the proportion of devices with Indian-made batteries.
As the publication reports, Apple has already recently issued a corresponding instruction to contractual partners. Financial Times. In return, battery manufacturers for Apple devices received a recommendation to expand their capacities in India. At least this information was received by the companies Desay and Simplo Technology, which expect an imminent increase in the volume of orders for batteries for Apple smartphones. If everything goes according to plan, the latter company can increase the share of its smartphones equipped with Indian-made batteries. As you know, the Japanese company TDK recently decided to set up a factory in northern India to produce components for iPhone batteries. Desay and Simplo Technology, which have battery production sites in India, could well become customers of the company.
The problem, as the source explains, is that since 2020 the Indian authorities have tightened the legislation on organizing production in the country by foreign investors. To obtain approval from Indian authorities, foreign investors must now set up a joint venture with an Indian company. Chinese battery maker Sunwoda already has a plant in India, but it opened before the new rules were introduced. Attempts by Chinese companies to build new factories in India could face a ban. The Chinese company Luxshare, which is engaged in the contract assembly of Apple devices, has already received such a ban and therefore was forced to spend $ 330 million to expand its businesses in Vietnam, rather than in India. Indian officials have a more biased attitude towards Chinese companies and therefore it will be difficult for Chinese battery manufacturers to heed Apple’s call to increase the proportion of products made in India.