Apple could soon make a lot more iPhones in India


Apple really wants to diversify its production line outside China.
Photo: Laurenz Heymann/Unsplash

J.P. Morgan analysts believe Apple could move 25% of iPhone production to India by 2025. The Cupertino giant has already moved a part of iPhone, iPad, and MacBook production outside China in recent years.

Apple is diversifying its supply chain and wants to reduce its reliance on China as a production hub.

Apple could manufacture 25% of its products outside China

J.P. Morgan analysts claim that Apple currently makes only about 5% of its products outside China. By 2025, this will increase to 25%. Apple has moved some iPad production to Vietnam following China’s strict zero-COVID policy. The company is also looking to assemble MacBooks and Apple Watches in the country.

Further, the analysts believe the company will move at least 5% of iPhone 14 production to India from late 2022. Within the next three years, Apple could end up making at least 25% of iPhones in India.

It was earlier reported that Apple could start manufacturing the new iPhones in India around the same time as China. But ultimately, Foxconn and Apple both realized it would be challenging to replicate the stringent security measures in China’s factory in India.

The analysts believe Apple’s suppliers Hon Hai (Foxconn) and Pegatron will play a key role in making India a key manufacturing hub.

India and Vietnam could assemble a lot more Apple products in the future

Apple was looking to diversify its supply chain before the pandemic itself. But COVID-19 brought everything to a stop. With the worst of the pandemic now over, the company is expanding its manufacturing presence outside China to secure its supply chain from any unforeseen circumstances.

India and Vietnam have emerged as the key manufacturing hub for Apple. The Cupertino giant has asked its vendors to look into expanding their manufacturing facilities in both countries.

Source: Reuters


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