iPhone production in India to reach 25% of global production by 2025

iPhone production in India to reach 25% of global production by 2025

iPhone production in India will rise to about 25% of total global production by 2025, according to a new analyst report. The report notes that a similar proportion of other Apple products will be made outside of China in the same year.

We’ve seen a number of signs recently that India is becoming increasingly important for Apple as a second major manufacturing hub, as the company continues its efforts to reduce its dependence on China…

background

Apple relies heavily on China as a manufacturing and assembly center. The large ecosystem of suppliers that arose in the country made the production of Apple products a tightly integrated process, difficult to replicate elsewhere.

However, it is becoming increasingly clear that Apple’s reliance on China is now the company’s biggest responsibility. The iPhone maker is forced to comply with laws that directly conflict with the company’s stated values; Production has seen disruptions due to trade wars and COVID-19 lockdowns; And the nightmare scenario of China’s invasion of Taiwan turned frighteningly unlikely — including the military exercises.

Apple has been working on production diversification for many years, and recently it has been accelerating these efforts. India is at the forefront of this initiative.

iPhone production in India is increasing rapidly

When Apple first started producing the iPhone in India, it was only the iPhone SE (the original), and the only models offered for sale within the country. Since then, the range of models has been gradually expanded, with the iPhone 13 joining the lineup earlier this year.

Foxconn is Apple’s main supplier in the country, responsible for all iPhone 13 production, while Wistron manufactures iPhone SE and iPhone 12. This year Foxconn will add iPhone 14 to the list, and production is expected to start within weeks.

It was previously reported that next year iPhone 15 production will begin simultaneously in China and India, something Apple had initially hoped would start with the launch of the iPhone 14 this year.

Other Apple production is rapidly moving out of China

Reuters He cites a JPMorgan analyst note.

JPMorgan analysts said on Wednesday that Apple could manufacture one in four iPhones in India by 2025, as the tech giant moves some production away from China, amid rising geopolitical tensions and strict COVID-19 lockdowns in the country. […]

The company also estimates that about 25% of all Apple products, including Mac, iPad, Apple Watch and AirPods, will be manufactured outside of China by 2025 from 5% currently.

The paper says the analyst in question has a reliability score of 80%.

However, reducing Apple’s dependence on China may not solve all human rights issues. Just this month, a number of major VPN services shut down service in India after a new law would have forced them to violate their privacy standards – and it would be impossible for them to Companies that do not keep records of the client’s activity.

The law also applies to iCloud Private Relay, an effective VPN service used only in Safari.

Apple has yet to comment on its planned response, but we have reached out to the company and will update with any response.

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