China is Apple's main production center for iPhones, but Apple has always wanted to transfer or introduce the domestic ** chain to India.
According to Wall Street**, Apple will move a quarter of its iPhone production to India in the next two to three years. This means that India will produce more than 50 million iPhones per year.
While China will remain a major producer of iPhones, Apple's diversification strategy is clearly aimed at mitigating risk and building a more balanced chain. Previously, India's iPhone production lagged far behind China's. However, the release of the iPhone 14 marked a turning point, with production starting simultaneously in both countries.
Apple's initial foray into production in India faced challenges, particularly from local unions opposing the 12-hour shift. Despite these initial obstacles, 2023 has witnessed a major shift: India has produced more iPhone 15s than any other model. In addition, Apple successfully launched an Indian-made iPhone on the same day that it was first released globally.
Apple's main manufacturing partner, Foxconn, is demonstrating its commitment to India by building a new factory in the Indian state of Karnataka, which is scheduled to be completed in April 2024. At the same time, there are reports that Apple plans to build another large factory to further strengthen India's position in Apple's global production network.
This shift has many benefits for both Apple and India. For Apple, it reduces the reliance on a single production**. In addition, lower labor costs in India can improve production efficiency. For India, the influx of Apple products has brought a lot of jobs and economic growth, boosting the country's manufacturing sector.
The move to India marks a new chapter in Apple's production strategy. With its large and skilled workforce, India offers a great option for Apple. India's role in the global tech sector will change as Apple continues to ramp up production.
By 2024, 20-25% of iPhones will be "Made in India". In the long run, this strategic move has the potential to consolidate future sales of the iPhone and its products in India. But it is still difficult for Apple to really transfer completely. Previously, some analysts believed that only nearly 10% of production will be transferred to China in the next 8 years.
If the iPhone is made in India, will you buy it?
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