Two government-affiliated sources claim that India is looking at ways to import part of China’s iPad manufacturing. According to reports, the tech titan is always in contact with the authorities. Despite the lack of concrete plans, if the project is successful, Apple’s presence in the nation would increase.
Earlier this year, Apple announced that it has begun making the high-end iPhone 14 in southern India. The tech giant has made the country’s oldest iPhone models for a while.
The tech giant has announced plans to diversify more of its supply chain away from China in response to the widespread demonstrations that have occurred over the past two weeks in opposition to Beijing’s strict zero-Covid policy. Due to the Chinese government’s lockdowns, Apple issued a warning in early November that iPhone shipments would be delayed. As a result, analysts have been downgrading their expectations for the crucial holiday shopping season.
According to The Wall Street Journal, Apple is actively looking into moving production out of China and into other Asian countries including Vietnam and India.
However, insiders caution that a lack of highly skilled workers and individuals with experience making complex goods like the iPad could hinder similar goals in India. It is especially harmful given the foreign policy backdrop of escalating hostility between China and India. The military presence near the China-India border has expanded as a result of recent territorial disputes between the two countries.
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Gene Munster of Loop Ventures estimates that 10% of Apple iPhones are made in India, but he expects production to gradually rise.
Munster continued, “I believe 35% of goods will be manufactured in India in five years.” “In the next five years, I believe Apple will expand iPhone manufacturing outside of China and India. Maybe Vietnam, Malaysia, and the United States.” While Apple has made attempts to shift production away from China, in our judgement, India currently still accounts for less than 5 percent, Piper Jaffray’s Harsh Kumar wrote in a note to clients.
