iPhone story: How Tim ‘cooked’ Apple's India recipe
Tim Cook's 15-year tenure as Apple's CEO has been marked by a strategic focus on streamlining supply chains and expanding operations, with India emerging as a key example of his approach. Upon taking over from Steve Jobs in 2011, Cook inherited a company whose manufacturing was heavily concentrated in China. However, he gradually shifted Apple's production to India, eventually making it a significant contributor to the company's iPhone output. This shift began as an exploratory move but gained clarity and momentum over time.
Cook's background as an operations-focused industrial engineer, trained at IBM, Compaq, and Intelligent Electronics, played a crucial role in his ability to make Apple's manufacturing processes more efficient and resilient. He reduced inventory levels, emphasized coordination with specialist suppliers, and eliminated unnecessary movement of components and finished products. This strategy allowed Apple to produce large quantities of complex devices with minimal idle inventory, capitalizing on its competitive advantage.
India initially presented challenges for Apple, with high import duties and low overall smartphone share. However, the decision to explore local manufacturing was influenced by the potential tax benefits and the opportunity to build a long-term manufacturing presence in a market Cook believed could grow similarly to China's earlier trajectory. Apple started with the more affordable iPhone SE, manufactured by Wistron in Bengaluru, before expanding to other models and partners like Foxconn and Pegatron.
The government's Production-Linked Incentive (PLI) programme significantly bolstered Apple's shift to India, providing suppliers with lucrative reasons to invest and increase output. Tata later acquired Wistron's Indian operations and assumed a larger role in the company's manufacturing network. As a result, Apple began producing the newest iPhone generation in India alongside China, capable of manufacturing even the Pro models for global markets.
By 2025, iPhones were Apple's most valuable export from India, with approximately $23 billion worth of devices shipped out from Indian factories.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
