Asia Minute: Apple’s Shifting Indian Strategy

Feb 6, 2017

Credit Wikimedia Commons

  Apple is expanding its presence in one of the world’s fastest-growing markets. Government officials in India say plans are underway to locally manufacture the iPhone. HPR’s Bill Dorman has more in today’s Asia Minute.


    

Components of the iPhone come from all over the world.  But for the most part, the final product is assembled in China.

That may be changing—just a bit and not right away.

But state government officials in southwestern India say an Apple manufacturing facility is coming, and it will make iPhones.

The Indian Express reports the factory is likely to be located in the technology hub of Bangalore.

Apple has not had any comment on the plans, but it’s a move that’s been rumored in India for months and would mark a new level of local commitment for Apple.

The technology giant is a textbook example of a global approach to supply chain logistics.

Parts for most Apple products are largely made by third-party companies across 28 countries.

According to MacWorld, nearly half of Apple’s suppliers are based in China.  About 17 percent are in Japan and about 9 percent are in the United States.

India has been a small part of the picture, and that may be one reason Apple has only a small share of India’s smart phone market—about 2 percent overall.

Apple’s rival Samsung is already a big player in the Indian market and in local manufacturing.

Samsung opened its first plant in India twenty years ago and that operation now makes smart phones, LED televisions, and refrigerators.