A report by J.P Morgan indicated that Apple may end up moving up to 25% of iPhone production to India by 2025. An article posted in the South China Morning Post indicates that this number may increase to 50% by 2027. Apple has reduced the volume of iPhone component orders from Chinese suppliers, and this has had a significant impact on their stock prices as well as their earnings estimates.
What is India’s manufacturing capacity right now?
Currently, India is only responsible for 5% of Apple iPhone production. There has been an increase in the scope of work recently, with Apple stating that it wants India to assemble iPhone 14 models just a short while after China started producing the same. It is believed that Apple may have India and China manufacture the Apple iPhone 15 series at the same time, rather than with a gap.
Apple wants to move to manufacture away from China as much as possible. The company has already increased the volume of MacBooks and AirPods produced in Vietnam, taking the share away from China in the process.
Why is Apple moving away from China?
China’s recent lockdown concerns have caused significant delays in manufacturing and sales. As a result, we’ve seen a global shortage of the Apple iPhone 14. Apple probably wants to prevent such issues from cropping up in the future by ensuring it has multiple manufacturing plants across the globe. Additionally, labour in India and Vietnam is believed to be cheaper, thereby increasing the company’s profit margins.
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