In recent years, Apple has been committed to implementing a strategy of "de-risking" and decentralizing its supply chain, aiming to reduce its dependence on a single market and improve the resilience and flexibility of its global supply chain.
India, as one of the world's most potential emerging markets, has naturally become an important target for the diversification of Apple's supply chain. However, the road to chasing dreams has not been easy, and Apple's attempt to assemble the iPhone 15 in India has encountered unprecedented challenges.
Last year, the India factory encountered a series of quality problems when assembling the iPhone 15, resulting in a wave of product returns and sharp price cuts, which not only brought huge economic losses to Apple, but also caused a lot of impact on its brand image.
Faced with this dilemma, Apple CEO Tim · Cook personally traveled to Chinese mainland to urgently rectify the supply chain. The move quickly stabilized the situation and once again highlighted Chinese mainland's central position in Apple's global supply chain.
However, Apple has not abandoned its layout in India.
This year, Foxconn and other foundries have taken over the production of the iPhone 15 series at their production base in Sriperembudur, India, and plan to further shorten the shipping time gap between India and Chinese mainland, and strive to synchronize the supply chain between the two places.
The India government and companies have high hopes for this, and have even threatened to increase output value by five times in the next five years. However, the reality is far more complicated than expected.
Despite the increase in India's production capacity, Chinese mainland remains a top priority for Apple's supply chain.
This year, Apple has returned some of the iPhone 16 foundry capacity to Chinese mainland, and industry giants such as BYD and Luxshare Precision have also joined Apple's supply chain system.
This adjustment not only improves the production efficiency and product quality of the iPhone 16, but also further strengthens Chinese mainland's core position in Apple's global supply chain.
In order to cope with the return of production capacity, foundries such as Foxconn are actively recruiting new employees to ensure that production runs smoothly.
At the same time, Apple is also strengthening cooperation with suppliers in Chinese mainland and continuously expanding its supply chain layout in Chinese mainland. This strategic adjustment will not only help Apple solve production capacity and quality problems in the short term, but also lay a solid foundation for long-term development in the future.
The challenges in the India market have made Apple realize that diversifying its supply chain is not an overnight process. It requires companies to find a balance between different countries and regions, taking into account both cost-effectiveness, production efficiency and product quality.
For Chinese supply chain manufacturers, Apple's strategic adjustment is undoubtedly a wake-up call, reminding them of the need to continuously improve their technical capabilities and service quality to cope with new changes in the global supply chain.
In the future, Apple may conduct small-scale pilots in more countries to gradually improve the production capacity and management level of these countries. But no matter how it is adjusted, Chinese mainland will occupy a pivotal position in Apple's global supply chain.
This is not only because China has a mature supply chain system and efficient production capacity, but also because China has become an integral part of Apple's global business.