Why Apple's Tie-Up With TDK For Battery Production In India Is A Major Win For Cupertino
Portfolio Pulse from Shomik Sen Bhattacharjee
Apple Inc. has announced a collaboration with TDK Corporation for the production of lithium-ion battery cells in India, which will be used to power locally assembled iPhones. The production is expected to start within 12-18 months. TDK, after acquiring Amperex Technology Ltd, is setting up a facility in Haryana, India, which will create direct employment for 8,000-10,000 people and indirectly support over 25,000 jobs. This move is part of Apple's strategy to reduce reliance on China and increase the domestic value addition of iPhones assembled in India, which currently stands at 12-15%. TDK controls over 60% of the global Li-ion cell market, and this partnership is a significant step in diversifying Apple's supply chain.
December 07, 2023 | 9:59 am
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Apple's partnership with TDK for battery production in India is expected to reduce its dependency on China, increase domestic value addition, and potentially lower costs and logistical complexities. This strategic move may also enhance Apple's image in one of the world's largest markets and could positively impact its stock in the short term.
The collaboration with TDK is likely to be viewed positively by investors as it aligns with Apple's strategy to diversify its supply chain and reduce geopolitical risks associated with over-reliance on China. The move could lead to cost savings and improved supply chain efficiency, which are beneficial for Apple's bottom line. The creation of jobs and increased domestic value addition in India may also improve Apple's standing in a key growth market, potentially leading to increased sales and market share.
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