Apple is doubling down on its efforts to make India its new manufacturing hub. A new report suggests that the American tech giant is planning to increase the production limit to 25 percent of its overall capacity by the year 2025. Apple currently plans to shift 5 percent of the total production of iPhone 14 to India by the end of this year. JP Morgan Analysts have also shed light on the production details of next year’s iPhone 15 line-up.
Analysts claimed earlier that Apple has shortened the production period of its new iPhones in India this year, barely six weeks or so from the production cycle in China. In terms of production of iPhone 15, Apple iPhone 15 may see its production at the Foxconn and Wistron manufacturing facilities in India at the same time with China.
The report by JP Morgan states, “India’s iPhone supply chain has historically supplied only legacy models. Interestingly, Apple has requested that EMS vendors manufacture iPhone 14/14 Plus models in India in 4Q22, within two to three months of the start of production in Mainland China.”
“The much shorter interval implies the increasing importance of India production and likely higher iPhone allocations to India manufacturing in the future,” the report noted.
“We believe Apple only produces iPhone 14/14 Plus models in India now due to the more complex camera module alignment of the iPhone Pro series (done by EMS vendors) and higher local market demand for the iPhone 14 series (tax savings),” it added.
Other country that will benefit from Apple’s r/e-allocation of manufacturing process is Vietnam. The report suggests that Vietnam will contribute 20 percent of all iPad and Apple Watch productions, 5 percent of MacBook and 65 percent of AirPods by 2025.
The boost in India’s allocation of manufacturing could be attributed to both the countries push towards ‘Make in India’ as well as the enhancements made in ease-of-doing business. Apple’s ‘Make in India’ iPhones will potentially account for close to 85 percent of its total iPhone production for the country this year. This also hints at a growing market for iPhone in India.
Market intelligence firm CyberMedia Research (CMR) claims that the imports of iPhones are likely to come down to 15 percent this year (from 50 percent in 2019). While domestic manufacturing by the Cupertino-based tech giant is set to go up substantially to 85 percent.
The iPhone 14 series production is expected to take from 7 million iPhones in 2021 to touch a new milestone of around 12 million iPhones in 2022. The market intelligence firm claims this will be a 71 percent (year-on-year) growth.
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