Supplying Automated Equipment for iPhone 17 Production to Indian Factories
LG Electronics has supplied iPhone production equipment for the first time, expanding its collaboration with Apple beyond supplying components at the affiliate level to a comprehensive partnership. It is evaluated that the technological capabilities of LG affiliates-LG Display and LG Innotek-have been validated through the supply of display and camera module components, leading to further achievements.
On November 5, Indian business media outlet The Economic Times reported, "The LG Production Engineering Research Institute has supplied equipment for automated manufacturing processes for the iPhone 17 to Indian factories operated by Foxconn, Tata Electronics, and Pegatron." While LG affiliates have previously supplied components, this is the first time LG Electronics has provided manufacturing equipment for finished product production.
The Apple iPhone is the world's best-selling smartphone model, with annual sales of 200 million units. Some have expressed concerns about the iPhone 17's artificial intelligence (AI) performance, but sales in the first ten days after launch increased by 14% compared to its predecessor, indicating strong demand. Apple CEO Tim Cook described the demand for the iPhone 17 as 'explosive,' and in the third quarter of this year, Apple recorded its highest-ever quarterly revenue.
Apple has also significantly increased the proportion of iPhones produced in India instead of China, in response to tariff risks and the growth of the Indian domestic market. After beginning iPhone production in India in 2017, Apple started manufacturing all lineups of the iPhone 16 series, released last year, in India.
Apple is expected to mitigate supply chain risks from rapid changes by adopting LG Electronics' production equipment. As Apple expands production in India, LG Electronics is anticipated to supply a substantial volume of manufacturing equipment.
Most importantly, by meeting Apple's stringent quality standards and reliably supplying equipment, LG Electronics has secured a crucial business reference for expanding its domestic and international operations. This could also serve as a key opportunity in its strategy to become a 'national brand,' including an initial public offering (IPO) of its Indian subsidiary and the launch of India-exclusive home appliance lineups.
An industry official stated, "LG Electronics is shedding its image as a traditional home appliance company," adding, "The company is monetizing its manufacturing strengths through new fields such as smart factory solutions leveraging manufacturing AI and digital twin technology, supplying semiconductor production equipment to Intel, and developing high-bandwidth memory (HBM) hybrid bonders."
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