25% Apple Products Can Be Made In India By 2025: Find Out Why?
On Wednesday, J.P.Morgan analysts said that by 2025, Apple is planning to produce 25% of iPhones from India. This means Apple will make one out of four phones in India. This comes as a plan of Apple to move some production away from China, amid mounting geopolitical tensions and strict COVID-19 lockdowns in the country.
It will be from late 2022 itself that the company shall move about 5% of iPhone 14 production to India. India also happens to be the world’s second-biggest smartphone market after China.
Manufacturing Outside China to Increase to 25%, Currently at 5%
From the current 5% manufacturing of Apple products, including Mac, iPad, Apple Watch and AirPods outside China, the number will increase to 25% by 2025.
In line with the Indian government’s push for local manufacturing, since 2017 Apple has been doing the iPhone assembly in the country via Wistron and later with Foxconn. Since then, the Cupertino based giant is betting big on India.
After Pandemic, Company Reaccelerating Relocation Efforts
Many companies have been eying to relocate their businesses, but the same more hampered by the pandemic. Now with restrictions easing, more companies, including Apple, are reaccelerating these efforts this year.
According to J.P.Morgan analysts led by Gokul Hariharan, who is rated 4 out of 5 for estimates accuracy, said “Taiwanese vendors such as Hon Hai and Pegatron play a key role in the relocation to India. In the medium to long term, we also expect Apple to qualify local India manufacturing suppliers,”
Earlier this month, in order to assemble iPhones in the country amid Apple’s plans to cut production lag with China, Indian conglomerate Tata Group was in talks with Wistron to establish a joint venture.