Apple expected to produce one out of every four iPhones in India by 2025
- ByStartupStory | September 22, 2022
J.P. Morgan analysts predict that by 2025, India will produce one out of every four iPhones produced by Apple Inc. According to a Reuters report, due to rising geopolitical tensions and China’s tight COVID-19 lockdowns, Apple is considering moving more and more of its iPhone production to India.
Taiwanese vendors like Hon Hai and Pegatron “play a crucial role in the move to India,” according to J.P. Morgan analysts led by Gokul Hariharan. We also anticipate Apple to certify local Indian manufacturers in the medium- to long-term.
By the end of 2022, the Cupertino, California-based corporation is anticipated to shift about 5% of iPhone 14 production to India, according to J.P. Morgan. India is the second-largest smartphone market in the world, which is essential to note.
The Reuters story states that the production change won’t be restricted to iPhones alone. By 2025, it is anticipated that about 25% of all Apple products, including the Mac, iPad, Apple Watch, and AirPods, will be produced outside of China. Only 5% of other Apple products are currently produced anywhere other than China. Early this month, media sources suggested that India would be responsible for at least 12% of the free-on-board (FOB) price of Apple iPhones produced by its vendors globally. The ratio was calculated using information that Wistron, Foxconn, and Pegatron provided to the Indian government.
In 2017, Apple started producing the iPhone in India with the help of Foxconn and Wistron. The IT giant’s decision continues to be in line with New Delhi’s optimistic view of domestic manufacturing. It’s interesting to note that the Cupertino-based company has already moved a sizable amount of manufacturing to India. Apple has been producing the iPhone 13 in India, and there are already preparations in place to produce the iPhone 14 there.
According to reports, one of Apple’s suppliers, Wistron, is also negotiating to form a joint venture to produce iPhones in India with the Indian giant Tata Sons. The Indian government challenged the IT giant to produce goods worth $5 Bn yearly over the following five years last year.
Companies that heavily rely on China are under pressure to relocate as a result of the pandemic’s disruption of supply chains. Businesses like Google are also interested in India as a profitable manufacturing hub.
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