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Made in India: iPhone 16 Batteries to Shift Production Away from China
Apple is actively pursuing a strategic shift in its production processes by relocating the manufacturing of iPhone 16 batteries from China to India.
Apple is actively pursuing a strategic shift in its production processes by relocating the manufacturing of iPhone 16 batteries from China to India. This move aligns with Apple's broader initiative to decrease its reliance on China for the production of various devices, particularly iPhones. Over the years, the tech giant has redirected its attention towards India, seeking to strengthen its partnership in the region. Apple has communicated to its suppliers in India to ramp up production for the iPhone 16 battery, marking a significant step in diversifying its manufacturing and supply chain operations.
China has traditionally served as a pivotal hub for Apple's extensive production and supply chain activities. However, the ongoing global challenges, notably exposed by the COVID-19 pandemic, have prompted Apple to reconsider its dependency on a single region. The shift towards India is viewed as a strategic move to mitigate risks associated with overreliance on a specific geographic location.
Apple to manufacture iPhone 16 Batteries in India
According to a report from 9To5Mac, Apple has instructed its Chinese suppliers to commence the production of iPhone 16 batteries in India. This decision is part of Apple's broader strategy to reduce its reliance on China across various aspects of production and supply chain management. Analysts interpret this move as a proactive measure to enhance the company's resilience by embracing diversification.
The potential disruption to Apple's operations during global geopolitical tensions, particularly between China and the United States, adds urgency to the need for diversification. Furthermore, Apple faces scrutiny over its association with China amid concerns about human rights issues. Navigating these challenges requires adherence to local laws, even when conflicting with the company's values.
A significant revelation from the Financial Times indicates that iPhone 16 batteries are likely to be primarily, if not exclusively, manufactured in India rather than China. “Battery manufacturers, such as Desay of China, have been encouraged to establish new factories in India, while Simplo Technology, a Taiwanese battery supplier for Apple, has been asked to scale up production in India for future orders.”
While the timeline for the local production of iPhone 16 batteries in India is tentatively set for 2025, uncertainties persist, especially considering the expected launch of iPhone 16 in 2024. Rajeev Chandrasekhar, the Minister of State for Electronics and IT, has commended Apple and its supplier TDK for “goal of deepening electronics manufacturing ecosystem in India”. This move reflects Apple's strategic business decisions and also aligns with broader industry trends emphasizing the importance of diversified and resilient supply chains.