Apple Inc may make one out of four iPhones in India by 2025, J.P.Morgan analysts said on Wednesday, as the tech giant moves some production away from China, amid mounting geopolitical tensions and strict COVID-19 lockdowns in the country.
On top of that one in four claims, on Wednesday, JP Morgan analysts also said they believe Apple will move approximately 5% of iPhone 14 production to India in late 2022. If the claim is accurate, it would be a radical shift for Apple, as most of Apple’s products are currently produced in China. At present, about 5% of Apple’s products are manufactured in India, Vietnam, and other locations.
One Out Of Every Four iPhones Will Be Made In India
Taiwanese vendors like Hon Hai and Pegatron “play a crucial role in the move to India,” according to J.P. Morgan analysts led by Gokul Hariharan. We also anticipate Apple to certify local Indian manufacturers in the medium- to long-term. By the end of 2022, the Cupertino, California-based corporation is anticipated to shift about 5% of iPhone 14 production to India, according to J.P. Morgan. India is the second-largest smartphone market in the world, which is essential to note.
A report came out on September 9, 2022, revealing that Indian conglomerate Tata Group was in talks with Wistron to form a partnership for iPhone production. Further details of the plans haven’t been confirmed, but Tata Group could buy equity in Wistron’s India plants. It’s also possible that the two companies will build a new assembly plant.
“India’s iPhone supply chain has historically supplied only legacy models. Interestingly, Apple has requested that EMS vendors manufacture iPhone 14/14 Plus models in India in 4Q22, within two to three months of the start of production in Mainland China,” according to the JP Morgan report.
The pandemic hampered supply chain relocation plans for businesses, but with restrictions easing, more companies, including Apple, are reaccelerating these efforts this year. The brokerage expects Apple to move about 5% of iPhone 14 production from late 2022 to India, which is the world’s second-biggest smartphone market after China.
Apple started assembling the iPhone in India back in 2017. The company currently manufactures iPhones 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.
