Apple products are built almost exclusively in China, but the company has tried to diversify to make its supply chain more resilient. The pandemic has undermined those plans, but now they are back.
Reuters cites a report by JP Morgan analysts that says Apple wants to move 25% of global iPhone production to India by 2025. That fraction currently stands at around 5%.
It’s not just iPhones, the report also says that around 25% of all Apple products – iPad, Apple Watch, AirPods, and Macs – will be moved out of China by 2025 (the current number of those is again around 2025). 5%).
Apple has been building iPhones in India since 2017. It started with the original SE and the units made were for the local market only. However, it has since added new models (including the iPhone 13) and started exporting Indian-made iPhones.
Foxconn is expected to start building the vanilla iPhone 14 in India in the coming weeks. This is a much shorter time frame than usual, for example iPhone 13 production in India only started in April.
“Taiwanese suppliers such as Hon Hai and Pegatron play a key role in the move to India. In the medium and long term, we also expect Apple to qualify Indian local manufacturing suppliers “, state to JPMorgan analysts led by Gokul Hariharan.
Local businesses also want a piece of the action, Bloomberg recently reported that Indian conglomerate Tata Group is in talks with Wistron for a joint venture to assemble iPhones (Wistron was the company that started building iPhone SEs in India in 2017. ).
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