Science and Technology Desk: Apple products are in high demand in India, one of the most populous countries in the world. Tata Electronics is one of the three companies that manufacture Apple's iPhone in India.

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Tata already has two factories for iPhone production. This time, one of the top technology companies of the country is going to acquire the majority share of a third factory.

Citing various sources, Reuters reported that Tata is going to buy 60 percent stake in the Tamil Nadu unit of Pegatron, a Taiwan-based supplier of iPhones. According to the agreement, they will oversee the day-to-day operations of the iPhone manufacturing plant. On the other hand, Pegatron will provide technical support with 40 percent stake.

However, there is no response from Tata, Pegatron or Apple regarding the deal.

Most of Apple's products, including the iPhone, are manufactured in China. But in the context of the US-China conflict in the technology sector in the past few years, Apple is looking to diversify its product supply channel outside of China.

That is, the US company wants to reduce its dependence on China. And that is why Apple has recently taken the initiative to expand its manufacturing network in India

Apple has expanded its manufacturing network in India quite rapidly in recent times. Apple has taken India seriously as an alternative to China due to local government subsidies, skilled manpower and technological capabilities.

Recently, it was reported that iPhones worth about 6 billion dollars made in India were exported abroad in the six months from April to September this year. The number is 3 times compared to the same period of the previous year. Of this, Tata Electronics contributed 1.7 billion dollars. Note that in the last financial year (2023-2024), iPhones worth 14 billion dollars were made in India.

As of April this year, 1 in every 7 iPhones is currently manufactured in India. That is, 14 percent of the global iPhone production is now supplied from India. Of this, Pegatron assembles 17 percent of iPhones and Foxconn contributes 67 percent.

India's importance in Apple's supply chain is steadily increasing. Analysts estimate that India will account for 20-25 percent of global iPhone shipments in the current financial year. That in 2023 was between 12 and 14 percent.

It is assumed that the matter is not pleasant for China. However, it is unlikely that India will soon overtake China to become the top iPhone supplier. Because India has not yet achieved China's ability to manufacture fine and advanced parts.

Apple does not manufacture any of the iPhone parts itself. Even the work of assembling various parts is done by them to several suppliers. But Apple ensures quality by closely monitoring every step of the entire process, from component design to assembly.

There is another reason why the Indian market is attractive for Apple. iPhone sales in the country have increased significantly in recent times. According to a forecast by Bloomberg Intelligence, the annual iPhone market in the country could reach $33 billion by 2030.

The Chinese market is still very important for Apple. But in the past one year, they have had to have a bittersweet experience in the country. It is natural that Apple, the top company in a hostile country, needs to gain momentum to maintain its position in the nationalistic spirit that has emerged in the Chinese market, especially around local companies such as Huawei.

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What remains to be seen is how far India can become an alternative to China in the iPhone manufacturing ecosystem and as an iPhone market.