Apple is already acting fast to move the production of the iPhone 14 outside China. And now, Apple could move 25% of total global iPhone production to India by 2025, claims analysts at JP Morgan.
According to the report, Apple will move 5% of the iPhone 14 and iPhone 14 Plus production to India by late 2022. The company will then ask its suppliers to expand its manufacturing facilities in the country and produce 25% of all iPhones by 2025.
Apple, on the other hand, is also planning to move some portion of the production of other products, such as iPads, Apple Watch, AirPods, and others, to Vietnam by 2025. According to the report, Vietnam will produce 20% of all iPad and Apple Watch, 5% of MacBooks, and 65% of AirPods by 2025.
India has been Apple suppliers Foxconn and Wistron’s place of interest. The Indian government has been making a lot of moves to attract production in the country. The government is reportedly trying to establish India as the next ‘manufacturing hub’ of the world. According to the analyst, “ample labor resources and competitive labor costs” are some of the key factors that make India a desirable iPhone production location.
We believe Apple only produces iPhone 14/14 Plus models in India now due to the more complex camera module alignment of the iPhone Pro series (done by EMS vendors) and higher local market demand for the iPhone 14 series (tax savings). We expect the volume to start small in 4Q22 (~1M units per month, or 5% of total iPhone volume).
Apple competitors, including Samsung, Xiaomi, and OPPO, already manufacture a lot of smartphones in India. Google is also looking to move some of Pixel smartphones’ production to India, according to the latest reports.
The move comes as Apple looks to avert the effects of the global health crisis and geopolitical conflicts of China on its iPhone production. The company has already put in a lot of effort into expanding its production and supply chain beyond China into India, Vietnam, Brazil, and other countries. Today’s JP Morgan report suggests that it will happen sooner than later.