After a seven-year hiatus, Tim Cook finally made his return to India in 2016. This year, in April, the CEO of Apple visited New Delhi and Mumbai to inaugurate two flagship stores, one in each city.
According to Angelo Zino, a senior analyst at CFRA Research, Tim Cook’s visit to India was driven by the enormous potential he sees in the country. Zino believes that India, much like China, represents a similar market opportunity for Apple.
Since 2017, Apple has been manufacturing older iPhone models in India. However, in a significant shift in its manufacturing strategy, the company started producing the iPhone 14 in India in 2022. This move marked a crucial step toward Apple’s goal of manufacturing 25% of the world’s iPhones in India. In fact, approximately 3.5% of global iPhone production took place in India that year.
Willy Shih, a professor of management practice at Harvard Business School, explained that Apple’s decision to diversify its production base was driven by the disruptions caused by China’s Covid zero policy. The company recognized the vulnerability of relying solely on China and sought to establish a broader supply base to mitigate potential production shortfalls and sales impacts.
While the idea of shifting more iPhone manufacturing to India may seem promising, the reality is that it presents significant challenges. These challenges include finding skilled talent, developing infrastructure, and navigating complex regulatory frameworks. Apple declined to comment on these obstacles when approached by CNBC.
To learn more about Apple’s investment in India and the challenges it faces during the gradual shift away from China, watch the video above.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
