The tech behemoth has been trying to reduce its dependence on contract manufacturers in China, citing falling demand...
Digital Desk: In a big shift from its current Chinese suppliers, Apple likely to shift 50% of iPhone production to India by 2027, says a report by the South China Morning Post. The tech behemoth has been trying to reduce its dependence on contract manufacturers in China, citing falling demand.
India is currently Apple's second-largest worldwide production hub, after China. Recently, JP Morgan analysts were reported as claiming in a report by news agency Reuters that Apple plans to relocate 25 percent of global iPhone manufacturing to India by 2025.
"The iPhone 14's mass production schedule in India is still about six weeks behind China, but the gap has narrowed dramatically," according to TF International Securities' famed Apple analyst Ming-Chi Kuo.
"Therefore, it is reasonable to expect that India and China will be able to produce the iPhone 15 at the same time next year," he added.
In light of the current geopolitical scenario and uncertainties, according to a report by the news agency Bloomberg earlier this week, Apple will increase its production capacity outside of China. Apple's biggest contract manufacturer and partner, Taiwan's Foxconn Technology Group and Pegatron Corp., have included Southeast Asia in their expansion plans for this year.
"We will continue to grow our scale in mainland China, the Americas, and Southeast Asia, and these efforts will blossom in 2023," Young Liu, Chairperson of Foxconn’s flagship unit Hon Hai Precision Industry Co., was quoted as saying by Bloomberg, at a company event on Sunday.
To recollect, iPhone production was recently interrupted at Foxconn's manufacturing plant in Zhengzhou, Apple's largest contract manufacturer, due to worker dissatisfaction in the aftermath of China's severe Covid-19 rules. According to sources, the disruption at Foxconn's largest iPhone manufacturing plant cost Apple up to 6 million iPhone Pro devices.
Last year, the iPhone 14 Pro and iPhone 14 Pro Max were the most popular devices, offsetting slumping sales for the vanilla iPhone 14 editions.