Amid the rising political tensions between the two countries, Apple’s one of the biggest Chinese component manufacturers, Luxshare, has reportedly decided to invest in Vietnam instead of India.
How Did This Happen?
It appears that after three years, Luxshare’s move to make investments in Vietnam is a result of many failed attempts to expand its operations in India, as per the media report.
If you are wondering about Luxshare, it is Apple’s primary supplier for AirPods and could be an upcoming supplier for iPhones.
Now, this company now aims to shift their investment worth $330 million to Vietnam’s northern province of Bac Giang, the report noted.
Last week, the Vietnam government cleared the license for Apple’s manufacturer as highlighted in the report.
This deal with Apple has raised the total investment in Vietnam to $504 million.
The move will definitely result in loss for India, especially when Apple was planning to add Indian moguls like the Tatas into their supply value chain network, the report. Mentioned.
Why Would This Happen?
As we all know that Apple has been heavily dependent on China for meeting its manufacturing demand.
According to the industry stakeholders, Apple’s move shows an increasing sense of intent from the world’s most valuable company.
Prior to this, the media reported that Apple, through Taiwanese manufacturer Hon Hai Precision Industry Co. Ltd—known better as Foxconn—commenced assembly of its iPhone 15 lineup in India during August this year.
Clarifying the same, two senior industry officials said that Apple only assembled its non-Pro iPhone 15 models in the country—the manufacturing of its flagship iPhone 15 Pro series remains away from India, in a statement.
“Apple has diversified its assembly of the latest generation iPhones to India doesn’t come as any surprise. India as a nation has plenty of assembly capacity, and making its phones here gives it decent leverage to meet its expected demand. While this does show that India’s impact on the global technology supply chain is gradually increasing, a bigger step would have really come through if Apple would have brought the assembling of its more sophisticated ‘Pro’ iPhones to India,” said A senior industry consultant for the technology sector, who works with various companies as well as the Centre, while requesting anonymity.
