Apple may move a quarter of iPhone production to India by 2025

Analysts at J.P. Morgan, a New York City-based multinational investment bank and financial services holding company, predict that Apple will produce one in four iPhones in India by 2025.

The technology giant is taking conscious efforts to shift production away from China amid growing trade frictions and rigorously enforced COVID-19 bans.

Analysts, led by Gokul Hariharan, predict that by the end of 2022 Apple will shift about 5 per cent of iPhone 14 production to India, the world’s second-largest smartphone market after China. At the same time, they estimate that by 2025, 25 per cent of all Apple products, including Mac, iPad, Apple Watch, and AirPods, will be manufactured outside of China, up from 5 per cent today.

Since 2017, Apple has been assembling iPhones in India through Wistron and Foxconn, and a Bloomberg report revealed that Indian conglomerate Tata Group was in talks with Wistron to create a joint venture to assemble iPhones in India. Although the pandemic has hampered plans to shift the supply chain, Apple is resuming its efforts this year as restrictions are eased.

Analysts say Taiwanese suppliers such as Hon Hai and Pegatron have been instrumental in moving to India, and they expect Apple to eventually qualify local Indian manufacturing suppliers.

The sources for this piece include an article in Reuters.

IT World Canada Staff
IT World Canada Staff
The online resource for Canadian Information Technology professionals.

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