Apple faces logistical and infrastructure issues in shifting manufacturing to India

The Financial Times reported on Tuesday that Apple Inc is facing challenges as it attempts to increase production in India. The Cupertino, California-based firm has been shifting production away from China as the country’s strict COVID-related restrictions harmed supply chains across industries and trade and geopolitical tensions between Beijing and Washington grew.

According to reports, only about half of the components from a casings factory run by conglomerate Tata Group in southern India are in good enough shape to be sent to Apple’s supplier Foxconn.

According to the Financial Times, Apple’s 50% ‘yield’ does not meet the company’s goal of zero defects, and the company’s expansion in India has been slowed in part due to logistical, tariff, and infrastructure challenges.

Since beginning iPhone assembly in India in 2017 through Wistron Corp and later Foxconn, Apple has placed a large bet on the country, in line with the Indian government’s push for local manufacturing. Apple wants India to account for up to 25% of its production, up from 5 – 7% currently.

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