According to media reports, Apple has already informed its component suppliers about its decision to procure batteries for the upcoming iPhone 16 models from India.
Apple company logo inside an office building – illustrative photo. Image credit: Zhiyue via Unsplash, free license
With this decision about the production of the upcoming iPhone 16, the company is aiming to diversify its global supply chain and reduce reliance on China.
Chinese battery manufacturers, such as Desay and Simplo Technology, are encouraged to establish new factories or expand operations in India. Additionally, Japanese electronic parts maker TDK Corp will manufacture lithium-ion battery cells for Apple iPhones in India.
This economic change is also expected to create thousands of jobs in the new market, but the local impact on Chinese manufacturers is very likely to be negative, at least to some extent.
The report citing sources close to Apple notes that Chinese battery manufacturers have received encouragement to either establish new factories or expand their operations in the country in relation to production of batteries for iPhone 16. Desay from China has been prompted to establish new factories in India, while Simplo Technology, a Taiwanese battery supplier for Apple, has been urged to increase production in India for upcoming orders.
If the iPhone 16 battery supply progresses successfully, Apple also intends to relocate even more iPhone battery production to India.
Recently, IT Minister of India Rajeev Chandrasekhar announced that Japanese electronic parts manufacturer TDK Corp would produce lithium-ion (Li-ion) battery cells for Apple iPhones in India. These cells will be supplied to Sunwoda Electronics, and the contract with Apple has the potential to generate 8,000-10,000 jobs in India.
Desay and Simplo package the electric cells produced by TDK and their counterparts into modules, which are then sent to assemblers such as Foxconn. Foxconn, the Taiwanese company, plans to invest $1.5 billion in India as part of its expansion strategy.
Written by Alius Noreika