The Tata Group intends to grow its production plant in Hosur, India, which makes iPhone cases. The proposed expansion could quadruple the size of the existing plant, taking up 500 acres and adding more than 15,000 jobs. It is projected that this action will increase employment, possibly to 25,000–28,000 workers. The Hosur facility required an initial investment of Rs 5,000 crore.
According to a report, Tata Electronics plans to use its recently acquired iPhone assembly plant to expand its knowledge in the high-end electronics manufacturing sector. It is anticipated that this calculated move will quicken the company’s growth trajectory.
The new plant’s primary goal will be to produce Apple phone components. But it can also produce high-end phones for other businesses, which gives it flexibility and opportunities for diversification.
A source quoted in the report, “While the new facility could be dedicated entirely to Apple phone components, it shouldn’t be discounted that it might also produce components for other high-end phones of different companies.”
Tata Group recently acquired Wistron’s iPhone assembly plant in the Kolar district of Karnataka. As a result, the company has decided to increase personnel and expand manufacturing. With this historic acquisition, Tata is now the leading domestic iPhone manufacturer in India.
A technology market analyst revealed that this move is in line with Apple’s overall strategy of moving smartphone manufacturing to India in order to diversify its manufacturing base beyond China, and that it is in preparation for a significant upsurge in high-end electronics production.
Concurrently, Apple’s decision to set up production facilities in India is strategically significant, considering India’s critical role as a major market for the company. Tim Cook, the CEO of Apple, recognised the significance of India during an earnings call earlier this month, pointing out the company’s record revenue in India for the June-September quarter.
Cook said, “We grew very strong double digits and set an all-time revenue record in India. We find this market to be very exciting and it’s one of our main areas of focus. It appears that there is a lot of headroom because we have a small share in a big market. There is a remarkable shift in the market, with many individuals entering the middle class.”
India’s growth trajectory is further highlighted by a recent Counterpoint report, which shows that sales increased during the June-September quarter despite the market’s overall stagnation. Apple’s performance in India is consistent with this pattern, with a strong year-over-year growth rate of 34%. Additionally, Apple achieved a significant milestone in Q3 2023 when it surpassed 2.5 million units shipped to India, setting a new record.
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