According to two sources close to the Indian government, India is looking into ways to transfer some of Apple’s iPad production from China. The tech behemoth is reportedly in constant communication with authorities. Although no specific plans have been established, if the initiative is successful, Apple’s presence in the country would expand.
Apple said earlier this year that it has started producing the premium iPhone 14 in southern India. For a number of years, the tech giant has produced the country’s older iPhone models.
Following nationwide protests that have taken place over the past two weeks in response to Beijing’s tough zero-Covid policy, the tech giant has announced plans to diversify more of its supply chain away from China. Apple issued a warning in early November that iPhone shipments will be delayed as a result of the Chinese government’s lockdowns, and experts have been lowering their expectations for the important holiday shopping period.
Over the weekend, The Wall Street Journal claimed that Apple is aggressively exploring to move production out of China to other Asian nations, including Vietnam and India.
Even so, sources warn that similar ambitions in India could be slowed down by a shortage of highly skilled workers and people with experience in creating complicated products like the iPad. The backdrop of foreign policy, with rising hostilities between China and India, is particularly unhelpful. Due to recent territorial disputes between the two nations, the military presence near the China-India border has increased.
10 per cent of Apple iPhones, according to Gene Munster of Loop Ventures, are produced in India, but he anticipates a gradual increase in output.
“I think in five years, 35 per cent will be manufactured in India,” added Munster. “I think Apple will add iPhone production to other countries outside of India and China in the next five years. Perhaps Vietnam, Malaysia and the USA.” In a note to clients, Piper Jaffray’s Harsh Kumar wrote: “While Apple has made efforts to move production out of China, in our opinion, India still accounts for less than 5.”
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