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iPhone India Boost: Tata Group Close To Finalising Plant Takeover

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Last Updated: January 10, 2023, 17:02 IST

iPhone 14 is already made in India

iPhone 14 is already made in India

The company is looking to be the first local vendor for manufacturing iPhones for Apple in India and also stands to be part of the incentives on offer from the government.

Tata Group is looking to fulfil its ambitions of making iPhones in India with a reported deal to takeover plant in South India close to being finalised. Once the deal goes through, Apple will finally have a local supplier for iPhones, in addition to the support provided by Foxconn and Wistron in the country for iPhone production.

According to a Bloomberg report this week, Tata Group has been talking to Wistron for its plant and wants to wrap up the deal by March this year, sources quoted in the report said.

Tata Group has considered a joint partnership with Wistron for iPhone production, but now would prefer to own the plant and use Wistron’s production expertise to make iPhones for the Indian market, the report adds. Manufacturing iPhones can be a complex exercise so it makes sense for Tata to use the vendor’s know-how in the industry and also prior experience in making iPhones in local conditions.

Wistron is one of the few manufacturers that has slowly moved away from its iPhone-only production strategy. And with this reported deal, it could be looking to exit the segment in India as well, even though Apple now views the country as a great alternative to China for manufacturing. Apple wants to lessen its dependence on China for manufacturing, which became obvious during the recent covid lockdown in the country. India and Vietnam are being viewed as possible options outside of China, where Apple has been making most of its products for years.

Apple also is looking to strengthen its footprint in India with its first set of retail stores finally coming up in the country. The company has started hiring for its retail team in India, which hints the delayed launch could be closing in.

Apple has been making iPhones in India since the SE variant, and it even has assembled the latest iPhone 14 model in the country. This year it wants to shorten the gap between its manufacturing schedule, and the supposed Wistron deal could expedite its plans.

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