It’s a long-established strategy, but it’s now taking shape. To limit its dependence on China, Apple has been seeking for several years to move part of its production to India. During its last fiscal year, Apple saw the cost of manufacturing its phones in the country triple, according to the US agency Bloomberg.
The company has spent $7 billion in India on the production of its iPhones. A figure that now brings the share of domestically manufactured Apple phones to 7%. In 2021, this figure was only 1%.
Tensions between Washington and Beijing
This leap has been possible thanks to the brand’s latest model, the iPhone 14. Part of the production of the latest version of the device has been entrusted to Indian factories. Thus, some iPhone 14 but also iPhone 14 Plus come from India, but not the high-end versions. The iPhone 14 Pro continues to be produced in China.
According to Bloomberg, Apple should probably try to launch production of its future iPhones at the same time in India and China. So it would be the first time that production has started in two different countries simultaneously.
Apple’s stated goal is to produce a quarter of its iPhones outside of China. This distancing is explained by the tense relations between Washington and Beijing, which continue to harden. At the end of 2022, strong tensions also broke out in the “iPhone city”, nickname of the Foxconn factory city located in Zhengzhou.
Analysts from the US agency believe that Apple could reduce its dependence on China between 20 and 40% by 2030. But they assure that this strategic move will require strong financial investments. Investments already started by Taiwanese subcontractor Foxconn. In early March, $700 million was committed to build new manufacturing sites in India.
Source: BFM TV
