Apple to shift iPhone, iPad production to India and Vietnam
Business Technology

Apple to shift iPhone, iPad production to India and Vietnam

Apple is slowly lowering its reliance on China as it begins to move some of the production of its devices to India and Vietnam.

The Cupertino based Tech giant is betting on both nations to become global production hubs, according to analysts at JP Morgan.

In a report sent by analysts at the bank, Apple will produce 5% of its iPhone 14 smartphones in India before the end of 2022, and also plans to expand its production capacity in the country to 25% by 2025.

Vietnam on the other hand will be get 20% of all Apple watch and iPad production, including 5% of MacBook and 65% of AirPods being produced there by 2025.

India has been identified as a major market for production as big smartphone makers such as Xiaomi, Oppo, Vivo, and even Google see the country as a major alternative to China and Taiwan.

Despite Apple’s investment in India, the company has no plan to exit China which is responsible for a lot of the company’s production.

Foxconn which makes a lot Apple’s hardware, currently has over 20,000 workers in its iPhone assembly line in India, compared to 350,000 operators in China, according to analysts estimate.

Analysts still expect for China and Taiwan to get more subcontracting and increase their market share in the “near term” due to their better cost structure.

However the potential for India is there and companies aren’t missing it, with Samsung also building one of its largest factories in the South-East Asian country.

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