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Apple Shifts iPhone Production to India Amid Concerns About China — IR Insider
As Apple looks to shift production away from China due to a series of economic and political misfortunes, they have begun to move larger amounts of iPhone production to India.
www.irinsider.org
As Apple looks to shift production away from China due to a series of economic and political misfortunes, they have begun to move larger amounts of iPhone production to India.
Recent reports indicate that 2023 will see a 150% increase in iPhone production in India. This is a part of Apple’s long-term goal of shipping 45% of iPhones from India, up from a current 2-3%.
The change comes among larger efforts from US companies to decrease risk by avoiding reliance on Chinese markets. This shift also indicates Apple’s increased focus on providing devices to Indians. In the past few years, India has been exponentially growing its sales in India. For example, iPhone sales in India grew 100% YoY from 2020 to 2021. Establishing a greater physical presence in India will help facilitate the distribution of Apple devices to Indian consumers.
The shift also comes amid fears about the future of Chinese productive capacity. The past couple of years have been an increasingly tumultuous time in China, as the country has continued its controversial Zero Covid policy, even in the country's largest economic hubs.
Beijing has only doubled down on promises to keep the economy locked down to combat Covid in recent weeks. In addition to the concerns produced by the Zero Covid policy, the Chinese real estate market has recently faced challenges as property values have collapsed. The collapse has sparked fears of recession, with investors wary of declining real estate markets after similar trends triggered the 2008 Great Recession and decades of languish in Japan.
This shift also comes in the wake of greater scrutiny towards Chinese economic data. Over the past 10 years, China has disclosed increasingly little about its economic data, making evaluation of the Chinese economic outlook less precise.
Recently, China announced a delay in releasing third-quarter economic data. In addition, studies have indicated that Chinese economic growth has likely been greatly exaggerated over the past few decades due to incentives for local governments to artificially inflate their production numbers. Although the exact extent of these exaggerations is unclear, some evidence suggests that China’s GDP could be only about half the reported figure.
Apple Adds New iPhone 14 Maker in India in Shift From China
Apple Inc.’s Taiwanese contract manufacturer Pegatron Corp. has begun assembling the company’s latest iPhone 14 model in India.
That move makes Pegatron the second Apple supplier to produce the iPhone 14 in the country, people familiar with the matter told Bloomberg News, declining to be identified as the manufacturing plan is not public.
