Apple to move 25% of iPhone production to India by 2025

According to recent statements, it seems that Apple is ready to transfer 25% of iPhone production to India by 2025 and 20% for the iPad and Apple Watch in Vietnam with the same deadline.

Apple will produce more and more in India

For a few years now, Apple has been leaving signs. The American giant is now ready to transfer part of the production of its products outside of China. Tim Cook’s company is preparing to increase its production in India and Vietnam. One of the triggers for this decision was the zero covid policy applied by the chinese government. Indeed, this strategy has a significant impact on the production of the American giant in China. Apple’s supply chains in China have been hit hard by the strict shutdowns imposed in Shanghai and several neighboring provinces.

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India pulls out all the stops to attract semiconductor makers to its territory

In a recent report, the Apple brand said it wants to move 5% of global iPhone 14 production to India by the end of 2022, and increase its manufacturing capacity in the country to produce 25% of all iPhones by 2025. Vietnam, meanwhile, will contribute to 20% of all iPad and Apple Watch production, 5% of MacBooks and 65% of AirPods by 2025, according to the same source. In recent years, India has managed to attract very large groups like Foxconn and Wistron by offering attractive subsidies.

However, the report states that over time, “ China and Taiwan will continue to gain market share due to their better cost structures “. Even though Apple has a tiny market share in India, the American company increased its investments in the country over the past five years. Apple, for example, opened its online Apple Store in the country two years ago and publicly announced that the first physical store would soon open in the country.

For its part, Samsung, Apple’s main rival, sees India as a key global production hub and has already set up one of its biggest factories in the country. Chinese smartphone maker Xiaomi, which currently dominates the market, along with rivals Oppo, Vivo and OnePlus also assemble a number of their devices in India. For its part, Google also plans to transfer part of the production of Pixel smartphones to India. Separately, the company recently said that it will release its next model, the Pixel 7, in India.

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