China’s AI Advancements Set to Drive Global Innovation and Collaboration by 2030
Apr 28, 2025
Apple Cook
The focus remains on iPhone manufacturing:
Currently, Apple's manufacturing strategy in India revolves around the iPhone. Apple, through its partners Foxconn and Tata Group, has built large-scale iPhone production facilities, with a large portion of its products being exported to major markets such as the United States — India has become one of Apple's largest manufacturing hubs outside of China, well, especially after trade tensions between China and the United States led to tariffs on Chinese-made electronics.
The strong demand for iPhones in India, coupled with the government's Production Linked Incentive (PLI) program, makes it economically and feasible for Apple to move production to India. However, the situation is not quite the same for MacBooks and iPads. According to people familiar with the matter, the domestic sales market for these products is relatively small compared to the iPhone. This limited demand makes it unrealistic for Apple to invest in a dedicated MacBook and iPad production line in India at this stage.
Supply Chain and Market Challenges:
One of the main reasons for Apple's reluctance to manufacture MacBooks and iPads in India is that building a strong supply chain is too complicated. Unlike smartphones, which benefit from India's well-established ecosystem of suppliers and component manufacturers, the supply chain for laptops and tablets is much more complex, and the supply chain system in India is relatively weak. Building a reliable and robust supply chain for these products requires significant time and investment – industry estimates can take three to four years to reach the required scale and efficiency.
In addition, most of the existing supply chain for MacBooks and iPads is located in China. Migrating these operations not only creates logistical challenges, but can also disrupt global supply and distribution. Apple also believes that the global production capacity of MacBooks and iPads is sufficient, and there is no urgent need to build a new production base in India for the time being.
Although there are reports that Apple has launched a feasibility study to explore the possibility of expanding its manufacturing base in India beyond the iPhone and AirPods. While this does not guarantee immediate action, it suggests that Apple is willing to consider expanding its manufacturing operations in India if market conditions and supply chain capabilities can keep up in the future.
