The COVID-19 pandemic and the constraints caused by it certainly taught a lesson to a lot of companies – they can’t keep their manufacturing lines in a single country. The multiple waves of COVID that exploded in China caused serious havoc to the industry. Apple was seriously hit by the constraints in China. After all, Foxconn, its partner manufacturer, has its stronghold in the country. In a bid to reduce reliance on China, the company wants to raise its manufacturing power in India. As per a new report, the brand plans to have 50% of all iPhones produced in India by 2027.
Back in September, J.P. Morgan claimed that by 2025 Apple would shift up to 25% of its iPhone production to India. Now, a new report from South China Morning Post suggests that will rise to 50% in 2027. That’s right in less than two years, Apple will push another half of iPhone production to India.
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50% of all iPhones will come from India in 2027
That’s a serious twist for iPhone manufacturing. Right now, India just produces 5% of all iPhones. This year, Apple pushed its Indian arm a little further in order to raise the production of the iPhone 14 series. Apple’s 2022 flagships were seriously affected by the COVID-zero campaign in China. Now, the situation is getting better when it comes to the iPhone 14 series. But Apple wants to be ready for the iPhone 15 and wants to begin production in China and India at the same time. Worth noting, that the trial production already began in China.
Worth noting, that besides the iPhone, Apple is also adjusting the production of other devices in its portfolio. For instance, some products are now being produced in Vietnam. The goal clearly is to reduce reliance on China. It’s not a surprise, since the country keeps its real situation with COVID-19 under wraps.
The move certainly is something that the Indian government will celebrate. In the recent years, India has been adopting a lot of policies to incentive brands to begin local manufacturing in the country.