iPhone 16 batteries to be primarily manufactured in India

In a strategic manoeuvre aimed at reducing its reliance on China, Apple has reportedly communicated a strong preference for manufacturing iPhone 16 batteries in India.

As part of this initiative, an existing Indian battery supplier has been encouraged to scale up production, while Chinese suppliers, including Desay and Simplo Technology, have received directives to establish battery factories within India.

Additionally, Japanese battery supplier TDK is gearing up for its own production facility in the country.

This significant shift in strategy deviates from the original decision made by Steve Jobs to centralize most of Apple’s manufacturing operations in China, a move that was previously lauded as a key achievement by Tim Cook during his tenure as COO. 

The change reflects a growing recognition of the strategic risks associated with being overly dependent on a single country, evident in events such as the COVID-19 pandemic and ongoing geopolitical tensions between the US and China.

The multifaceted rationale behind this move includes concerns about the impact of global events on manufacturing capacity, the unpredictability of trade relations between major economies, and the reputational challenges posed by close associations with a country facing human rights criticisms.

Apple’s decision aligns with a broader industry trend of diversifying manufacturing locations to mitigate risks associated with geopolitical and economic uncertainties.

Notably, the company aims to prioritise Indian production for iPhone 16 batteries, with local government support evident in a Japanese supplier, TDK, establishing a significant facility in Manesar, Haryana.

While this facility is expected to begin production in 2025, post-iPhone 16 release, it signifies a strategic commitment to bolstering the electronics manufacturing ecosystem in India.

Apple’s move underlines the industry’s evolving approach to supply chain management in response to a dynamic global landscape.