All about Apple & Tata's partnership

Tata Group is set to become Apple’s fourth iPhone contract manufacturer, following the industrial giant’s acquisition of Taiwanese firm Wistron Corp factory in southern India.

Will it be a watershed moment?

Here’s what you need to know!

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Apple drifting away from China!

Apple's heavy reliance on China has exposed the company to numerous risks. Geopolitical tensions between the US and China have affected Apple's operations and supply chain.

Natural disasters in China have also caused disruptions to Apple's supply chain, impacting its manufacturing and product availability.

The company's close association with China has damaged Apple's reputation and brand equity due to human rights violation there.

To mitigate these risks and diversify its manufacturing operations, Apple has been expanding its presence in various countries, particularly in South East Asia.

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Why did Apple choose India?

India is the second-largest smartphone market globally, with 1.42 billion mobile phone users, after China. The demand for consumer electronics in India is rapidly growing, projected to reach $21.2 billion by 2025 from $9.8 billion in 2021.

Apple conducted extensive research on the Indian market and identified its potential for aspirational goods, especially among the expanding middle class.

Currently, the Indian market is dominated by Android smartphones, primarily Samsung and Chinese brands like Xiaomi, due to their lower prices.

To tap into India's market potential, Apple aims to establish more manufacturing units in the country.

By manufacturing in India, Apple can bring down the cost of its products, making them more affordable for Indian consumers.

Apple aims to increase India's contribution to its overall production from the current 5%-7% to up to 25%.

To achieve this, Apple has partnered with Tata Group, a prominent Indian conglomerate, as a contract manufacturer.

The collaboration with Tata Group will enable Apple to leverage its manufacturing capabilities and expand its presence in India's booming consumer electronics market.