Apple plans to move 25 per cent of its entire iPhone production line to India by 2025, claims report

2022-09-24 02:44:18 By : Ms. Aiwa Xue

Tech giants have slowly started exploring alternatives to China, in order to diversify their supply chain, and end their over-reliance on Beijing. (Image Credit: Pexels)

Apple has been making its intentions of gradually moving production out of China clear, and the next destination seems to be the world's second-largest smartphone market –– India. As per a Reuters report that quotes JP Morgan analysts, the company even has a timeline in place for the same. Apple will move 25 per cent of its entire iPhone production line to India by 2025, as part of its efforts to geographically diversify its production and supply chain.

Besides this, the company -- for the first time -- is manufacturing a new iPhone series in India and China simultaneously, starting with the iPhone 14 series. The report adds that Apple plans to move about 5 per cent of iPhone 14 production to India by late 2022. It already produces iPhone 13 in India.

Not just iPhones, Apple also reportedly intends to move manufacturing of 25 per cent of all Apple products, outside China by 2025. This includes iPad, Apple Watch, AirPods and Macs.

Tech giants have slowly started exploring alternatives to China, in order to diversify their supply chain, and end their over-reliance on Beijing. Besides Apple, even companies like Google are looking to move their production facilities outside China, and the reasons are largely the same.

Also read: After Apple, Google could start moving its manufacturing out of China

China's zero tolerance policy towards COVID-19 means manufacturing units are shut for days, hindering the entire production line.

In fact, a report by Nikkei Asia claimed that extended strict lockdowns, owing to China's zero-COVID policy, have significantly slowed down production of the upcoming iPhone 14 series.

Apple's decision to manufacture the latest iPhones in India is being seen as an indication of times to come, especially with rising geopolitical tensions between China and other countries.