Apple has entered into a partnership agreement with India’s Tata Group to produce iPhones for the domestic and international markets. The deal came after Wistron, Apple’s Taiwan-based contract manufacturer, approved the sale of its Indian unit to Tata Group for $125 million. Subject to board approval, Tata Group will own 100% of Wistron InfoComm Manufacturing India.
The move represents a significant shift in Apple’s strategy, as the company has traditionally relied on Chinese factories to produce most iPhones. However, the ongoing US-China trade war and rising labor costs in China have led Apple to look for alternative sources of production. India has become an attractive option with its large consumer market, skilled workforce and favorable government policies.
Electronics and Technology Minister Rajeev Chandrasekhar today said the project will be completed within two-and-a-half years and the government will support Tata Group and other Indian electronics companies in their efforts to partner with global brands.
“I fully appreciate the growth of global Indian electronics companies supporting global electronics brands. India will be a reliable manufacturing and talent partner and realize the Prime Minister’s goal of making India a global power in electronics.”Chandrasekhar said.
Apple has been assembling iPhones in India since 2017, starting with the iPhone SE. Since then, the company has expanded its range of devices, including by assembling the iPhone 15 and iPhone 15 Plus.