Apple could shift a quarter of iPhone production to India by 2025: JP Morgan

Apple Inc could manufacture one in four iPhones in India by 2025, JP Morgan analysts said on Wednesday, as the tech giant moves some production out of China, amid rising geopolitical tensions and lockdowns Covid-19 restrictions in the country.

The brokerage firm expects Apple to shift around 5% of iPhone 14 production from late 2022 to India, which is the world’s second largest smartphone market after China.

He also estimates that around 25% of all Apple products, including Mac, iPad, Apple Watch and AirPods, will be made outside of China by 2025, up from 5% currently.

Apple, headquartered in Cupertino, California, has been betting big on India since it began assembling iPhones in the country in 2017 via Wistron and later Foxconn, in line with the government’s will. Indian to manufacture locally.

The pandemic has hampered companies’ supply chain relocation plans, but as restrictions ease, more companies, including Apple, are accelerating those efforts again this year.

“Taiwanese suppliers such as Hon Hai and Pegatron are playing a key role in outsourcing to India. In the medium to long term, we also expect Apple to qualify local Indian manufacturing suppliers,” analysts said. JP Morgan led by Gokul Hariharan, who is rated 4 out of 5 for accuracy of estimates.

A Bloomberg report said earlier this month that Indian conglomerate Tata Group was in talks with Wistron to form a joint venture to assemble iPhones in the country as part of Apple’s plans to reduce the production backlog with China.

Published on

September 22, 2022

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