LG Electronics will supply Apple's iPhone production equipment for the first time.
India's leading business outlet the Economic Times said on the 5th that LG Electronics' LG Production Technology Center supplied automated manufacturing equipment for the iPhone 17 to iPhone plants in India operated by Foxconn, Tata Electronics, and Pegatron.
Until now, LG Display and LG Innotek, affiliates of LG Electronics, have supplied parts such as display panels and camera modules, but this is the first time LG Electronics has directly supplied core manufacturing equipment used in the production of finished goods iPhones. This is seen as a result of the technological capabilities LG Electronics has accumulated by supplying equipment and systems to LG Display and LG Innotek earning Apple's trust.
The iPhone series, with about 200 million units sold annually, is the world's best-selling smartphone. The latest iPhone 17 has shown strong sales, with sales up 14% from its predecessor just 10 days after launch. Boosted by this, Apple posted the highest quarterly revenue on record in the third quarter this year. Apple CEO Tim Cook said the demand for the iPhone 17 is "explosive."
This adoption of LG Electronics' equipment is assessed as part of Apple's strategy to reduce supply chain risks while improving production efficiency. In response to tariff risks on Chinese goods and the expansion of India's domestic market, Apple has been rapidly shifting its production base to India. Since starting production in India in 2017, the entire iPhone 16 lineup has been produced in India.
LG Electronics is expected to see a sharp increase in supply volume as Apple raises the share of production in India. If it meets stringent quality standards and supplies equipment stably, it will secure a highly trusted reference (business track record) in the global market. Tied to its ongoing plan to expand an India-tailored home appliance lineup alongside the recent listing (IPO) of its Indian subsidiary, this is expected to serve as an opportunity to strengthen its foothold in India.
An industry official said, "LG Electronics is shedding its traditional image as a home appliance company and expanding its manufacturing capabilities into new businesses such as smart factory solutions, semiconductor production equipment, and HBM (high-bandwidth memory) hybrid bonders," adding, "It is a strategy to monetize LG's manufacturing strengths by expanding into new fields."