Apple products are almost exclusively produced in China; But the company is looking to diversify its supply chain. The widespread spread of the corona virus disrupted Apple’s plans in this area; But now the Cupertino giant has once again resumed its activities in the field of supply chain development.
In a report citing JP Morgan analysts, Reuters news agency claims that Apple intends to transfer 25% of its iPhone production to India by 2025. Currently, about 5% of Apple’s iPhones are produced in India. However, the production transfer program will not be limited to iPhones only.
Also, the recent report notes that the production of about 25% of all Apple products including iPad, Apple Watch, AirPods and Mac computers will be moved outside of China by 2025. Currently, only about 5% of the mentioned products are produced outside of China. Apple has started producing iPhones in India since 2017. This process started with the production of the first generation iPhone SE and the manufactured devices were sold only in the local market. However, since then, the production of new models such as the iPhone 13 has also started in India, and now the devices manufactured in this country are exported to other parts of the world.
According to forecasts, Foxconn will start production of the regular iPhone 14 model in India in the coming weeks. Thus, the production of the newer iPhone model outside the Chinese border will begin in a much shorter period of time than usual. iPhone 13 production in India started in April 2022.
Gokul Hariharan; JP Morgan Research Institute analyst claims that Taiwanese manufacturers such as Hon Hai and Pegatron play a key role in transferring production to Indian soil. Also, according to him, in the medium to long term horizon, Apple will probably confirm the qualification of a number of local suppliers in India to participate in the production process.
Local companies want to participate in iPhone production. The Bloomberg news agency recently reported that the Indian holding Tata Group has been negotiating with the Wistron company for a joint venture to assemble the iPhone in India. Wistron is the company that started manufacturing iPhone SE in India earlier in 2017.