Cupertino-based giant Apple is reportedly moving a portion of its iPhone production to India starting with the iPhone 14. A new report has now said that the iPhone-maker may make 25 percent iPhones in India by 2025.
According to JP Morgan analysts cited in a Reuters report, Apple is looking to make one out of every four iPhones in India by 2025 as the company looks to move some of its iPhone production away from China due to the geopolitical uncertaininty and strict COVID-19 lockdowns in the mainland region.
The report also said that Apple is expected to move about 5 percent of iPhone 14 production to India starting late 2022. Earlier, it was reported that Apple will start making iPhone 14 in India only a couple of months after China-made iPhones are rolled out. The analysts quoted in the report also estimated that Apple may bring about 25 percent production of all products including the Mac, iPad, Apple Watch, and AirPods outside of China by 2025. Currently, only 5 percent of Apple’s production is outside of China.
“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,” a JP Morgan analyst was quoted in the Reuters report as saying.
Apple started assembling the iPhone in India from 2017. The company currently manufactures iPhone in India via its suppliers Wistron and Foxconn. With the government’s push for local manufacturing with schemes like Production Linked Incentive (PLI), and the ongoing geopolitical tensions in China, Apple is reportedly planning to move a major chunk of the iPhone production to India.
Earlier, a Bloomberg report had said that the Tata Group was in talks with Wistron for a joint venture to assemble iPhones in India, as Apple plans to fix the lag in production that it faces in China.