Tata Group and the Evolution of iPhone Manufacturing in India

Tata Group may soon be the first Indian company to make iPhones. Currently, the Tata group is in talks with Taiwan’s Wistron Corp to form a partnership for manufacturing iPhones in India. India has emerged as Apple’s top manufacturing bet in Asia outside of China, and there are talks that Tata Group may just be the first Indian company to assemble the latest series of iPhones.

Strategic Partnership with Wistron Corp

In a report by Bloomberg, Tata Group is said to be in talks with a Taiwanese supplier to Apple Inc, Wistron Corp, to establish an electronics manufacturing joint venture in India, seeking to assemble iPhones in the South Asian country. The discussions with Wistron Corp. are aimed at making Tata a force in technology manufacturing, and the Indian salt-to-software conglomerate wants to tap the Taiwanese company’s expertise in product development, supply chain and assembly. The plan could entail Tata buying equity in Wistron’s India operations or the companies could build a new assembly plant.

The Shift from China to India

China, home to the largest iPhone factory in the world, is a significant manufacturing base for the Cupertino-based tech giant, Apple Inc. However, ever since the country’s dominance in electronics manufacturing has been under constant jeopardy, mainly due to rolling Covid lockdowns and perpetual political tensions with the US, Apple started looking elsewhere to diversify its production. A large part of the reason behind Apple’s push in India has been influenced by the ongoing trade war between the US and China. Setting up an extensive manufacturing and retail network in the second-biggest smartphone market in the world, India, has become an obvious solution.

Manufacturing Landscape and Market Share

At this point, iPhones are mainly assembled by Taiwanese manufacturing giants like Wistron and Foxconn Technology Group in China and India. Foxconn, Pegatron and Wistron – all headquartered in Taiwan – have long served as Apple’s primary contract manufacturers. According to market research estimates, the assembly distribution is as follows:

• Foxconn: Assembles about 60% of iPhones.
• Pegatron: Assembles about 30% of iPhones.
• Wistron: The first company to make iPhones in India, currently focused on a smaller share of production.

Production Timelines and Local Impact

Apple and Foxconn ultimately determined a simultaneous start in India and China isn’t realistic this year, although it remains a long-term goal. The first iPhone 14s from India are likely to be finished in late October or November, following the initial September release. Apple has apparently been working with suppliers to ramp up manufacturing in India and shorten the lag in production of the new iPhone from the typical six to nine months for previous launches. Manufacturing locally will allow Apple to get around the 20% duty that is mandated on imported devices in India, potentially allowing them to better compete with the likes of Samsung and One Plus through the means of an aggressive pricing strategy.

Overall, should the new venture between Tata Group and Wistron come through, it aims to eventually increase the number of iPhones assembled by as much as five times from what Wistron currently builds in India. CEO Tim Cook has been quite vocal about the South Asian nation being a key market for the company’s growth.