Apple Plans To Move 25% Of Its IPhone Production To India And 20% Of Its IPad And Apple Watch Production To Vietnam By 2025

Mobile App Trends

According To Analysts, Apple Plans To Move 25% Of Its IPhone Production To India And 20% Of Its IPad And Apple Watch Production To Vietnam By 2025.

September 23, 2022: Apple began assembling some of its devices in India and Vietnam a few years ago, gradually reducing its reliance on China.

The Cupertino giant is now preparing to turn the two countries into major global manufacturing hubs, according to JP Morgan analysts. By 2025, it will move 5% of global iPhone 14 production to India, and expand manufacturing capacity in India to add 25% of all iPhones by 2025.

Meanwhile, according to a report reviewed by TechCrunch, by 2025, iPads and Apple Watches will contribute 20% of all production, MacBooks 5%, and AirPods 65%.

India has attracted investment from Foxconn and Wistron in recent years by offering lucrative subsidies, and New Delhi is relocating to transform the country into a manufacturing hub.

The presence of foreign manufacturing giants, combined with an “abundant labor force and competitive labor costs,” make India a desirable location, analysts said.

Apple rival Samsung sees India as an important global manufacturing hub and has built one of the country’s largest factories.

Xiaomi, the current market-leading Chinese smartphone maker, and its competitors Oppo, Vivo and OnePlus also manufacture a large number of mobile phones in China.

Despite Apple’s small market share in India, iPhone makers have increased their investment in the country over the past five years.

The company publicly announced that he launched his online Apple Store in the country two years ago and is working on opening its first physical store in the country.

Foxconn now has more than 20,000 operators at his iPhone assembly plant in India, compared to his 350,000 in China, analysts estimate.

“India’s iPhone supply chain has historically only offered legacy models. to manufacture iPhone 14/14 Plus models in India.

The much shorter interval means the growing importance of Indian manufacturing and the potential allocation of iPhones to Indian manufacturing could increase in the future,” the report added. .

“Due to the more complex camera module adjustments of the iPhone Pro series (performed by EMS providers) and the growing local market demand for the iPhone 14 series (tax savings), Apple will only produce iPhone 14/14 Plus models in India.

According to analysts, Q4 2022 sales volume is expected to start low (about 1 million units per month, or 5% of total iPhone sales).

EMS providers, especially Pegatron and Wistron, are becoming more selective and prioritizing profitability while focusing on new areas such as electric vehicles and servers. Hon Hai remains iPhone’s leading EMS partner, moving to India. should benefit from,” the report said.

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