Apple expands manufacturing in India to avoid Trump's Chinese tariffs
What's the story
Apple is doubling down on its efforts to move component manufacturing from China to India, as part of a strategy to avoid possible tariff hikes on Chinese imports.
The tech giant is already in talks with more than 40 companies as part of its plan to cut dependence on China.
The move comes as part of Apple's larger strategy to diversify its supply chain while leveraging India's growing manufacturing prowess.
Strategic alliances
Apple explores partnerships with Indian suppliers
Apple is actively looking to partner with a variety of Indian suppliers, from big tech companies to electronics manufacturing services.
The company has already been in talks with some Indian firms, including Dixon and Amber.
The idea is to find potential suppliers who could locally source components. This is part of a broader strategy to reduce reliance on China for component manufacturing.
Transition challenges
Apple's transition to Indian suppliers: A complex process
However, the transition from Chinese to Indian suppliers is easier said than done.
For example, it took Aequs Group two years to reach the trial stage for manufacturing MacBook and Apple Watch components.
However, despite these challenges, Apple is sticking to its strategy. The company is leveraging local incentives and forming strategic partnerships to expedite this transition, even as geopolitical tensions and regulatory hurdles create obstacles for Chinese firms in India.
Long-term plan
Apple's long-term strategy to diversify supply chain
Apple's push to expand its supply chain in India isn't new.
By January 2024, Apple suppliers had reportedly invested $16 billion in their diversification efforts, benefiting countries like Vietnam in addition to India.
The shift has also made Apple one of the fastest-growing technology companies in India over the last few decades, cementing its place in the market.