Blow for China: Apple prefers India to manufacture batteries for next-gen iPhone 16 - Report

In what may come as a blow to China's manufacturing prowess, Apple is looking towards India to power its next generation of iPhones, according to a Financial Times report. The tech giant wants batteries for its devices to be manufactured in India to reduce reliance on China. 

Citing sources close to Apple, the publication said the company has already informed component suppliers about its preference to source batteries for iPhone 16 from Indian factories. 

While Desay of China has been urged to set up a battery manufacturing factory in India, Simplo Technology, a Taiwanese battery supplier, has been asked to scale up production in India for future orders. 

If the battery supply diversification for iPhone 16 goes through smoothly, Apple might  consider moving more iPhone battery production to India. 

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Why the move?

As trade tensions between Washington and Beijing continue to escalate, Apple is chalking up a strategy of diversifying its operations. India has already been a base for assembling and manufacturing iPhones for Apple and bringing battery production might be the next logical step. 

The wheels have already started moving to make the change happen. Earlier this month Union Minister Rajeev Chandrasekhar announced that Japanese electronic part maker TDK Corp will begin manufacturing lithium-ion battery cells for Apple iPhones in India. 

“Another big win for PM @narendramodi ji’s visionary PLI scheme in shifting the mobile manufacturing ecosystem to India. TDK, a leading supplier of cells to Apple, is setting up a 180-acre facility in Manesar, Haryana to build cells for batteries which will be used in the #MadeInIndia iPhones," Chandrasekhar posted on X (formerly known as Twitter). 

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Similarly, Apple's commitment to India is evident in its recent product launches. On September 22, 2023, Apple introduced the highly anticipated iPhone 15 series, featuring the iPhone 15, iPhone 15 Plus, iPhone 15 Pro, and iPhone 15 Pro Max, which hit stores in India and various other countries simultaneously.

Remarkably, Apple released the India-built iPhone 15 models on the same day they became available worldwide, underscoring India's importance in Apple's global production and distribution network. While iPhones have been manufactured in India, the company intends to begin the production of Airpods in the coming year.

In the next 4-5 years, the world's most valuable company has planned to scale up production in India by over fivefold to around $40 billion, according to recent reports. The firm has already crossed the $7 billion production mark in the last financial year, according to reports. 

(With inputs from agencies)