I’ve been waiting for this. CNN reports that Apple is considering beginning to manufacture the iPhone in India:
Apple executives met with Indian government officials on Wednesday to discuss a plan to make iPhones in the southern city of Bangalore, a person familiar with the talks told CNNMoney.
India’s commerce ministry confirmed that the meeting took place but declined to comment on what was discussed. In a statement, Apple (AAPL, Tech30) said it appreciated the “constructive and open dialogue we’ve had with government about further expanding our local operations.” But it would not go into detail.
Apple’s plans to set up an iPhone production plant in India’s main tech hub were first reported by the Times of India. The factory would be built in partnership with Taiwan-based manufacturer Wistron, the newspaper reported.
I think there are multiple reasons for Apple to want to do this. For one thing it should give them greater access to the Indian market.
But, importantly, it would give them a second source for iPhones if China becomes difficult or too expensive. It’s just prudent management.
If this actually comes to pass I don’t believe it means the company will cease production in China or that it will abandon the announced plan to start manufacturing iPhones in the United States. I also wouldn’t be surprised if the locations build different models.
How much of Apple tech has the CCP forced Apple to disclose in order to sell in China? Diversification of production makes sense, but I wonder if expectations that China would be more friendly to foreign investment didn’t pan out, or more specifically won’t pan out if the iPhone cannot maintain a position above the cell-phone-as-commodity market.