Apple speeds up its plans to move manufacturing to India: Here’s why


Apple is rapidly scaling back its manufacturing plans in India and Vietnam in the wake of China’s unrest over its zero-COVID policy, which has severely disrupted its supply chain, causing severe shortages of new iPhone 14 Pro models Is.

The Wall Street Journal reported that the company “led Foxconn to more actively plan for suppliers to assemble Apple products elsewhere in Asia, particularly India and Vietnam” to reduce reliance on Taiwanese assemblers. saying.

China’s turmoil, which last month hit its major supplier Foxconn’s Zhengzhou factory resulting in violent protests, means that “Apple no longer feels comfortable tying its business to one place,” reports said, citing analysts and people in Apple’s supply chain.

According to noted analyst Ming-Chi Kuo, Apple aims to ship 40-45 percent of iPhones from India, compared to the single-digit percentage at present.

Kuo predicted that iPhone shipments in the fourth quarter this year are likely to reach about 70 million to 75 million units, about 10 million below market estimates before the China turmoil.

According to him, the top-of-the-line iPhone 14 Pro and Pro Max models have been hit particularly hard.

According to JP Morgan, every fourth iPhone will be made in India by 2025.

In a nod to India’s push for local manufacturing, Apple earlier this year kicked off production of the new iPhone 14 in India, a first for the tech giant as it moved new iPhones to the country to reduce dependence on China. Reduces construction period.

Buoyed by ease of doing business and favorable local manufacturing policies, Apple’s ‘Make in India’ iPhones are likely to account for around 85 per cent of the country’s total iPhone production this year, according to industry experts.

Imports of iPhones in India are likely to decline to 15 percent this year (from 50 percent in 2019), while domestic manufacturing by the Cupertino-based tech giant is set to grow to 85 percent, according to market intelligence. Firm Cybermedia Research (CMR).

With the iPhone 14 series, Apple’s iPhone production in India is set to touch a new milestone of around 12-13 million iPhones in 2022, from 7 million iPhones in 2021.

According to CMR, the contribution of domestic iPhone manufacturing in India to increase from 50 per cent in 2019 to 73 per cent in 2021.

Meanwhile, the percentage of imported iPhones in India dropped from 50 per cent in 2019 to 45 per cent in 2020, 27 per cent in 2021 and around 15 per cent this year — showing a significant turnaround in India’s boom for Apple.

Apple first started manufacturing iPhones in India in 2017 with the iPhone SE.

The tech giant manufactures some of its most advanced iPhones in the country, including the iPhone 11, iPhone 12 and iPhone 13 at the Foxconn facility, while the iPhone SE and iPhone 12 are being assembled at the Wistron factory in the country.


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