It is no secret that Apple depends on China for a significant portion of its gadget manufacture. The company’s supply chain has been under increasing strain over the past few weeks as a result of this dependence. The production of the iPhone 14 Pro and Pro Max suffered as a result of turmoil in Zhengzhou, popularly known as “iPhone City.” Apple acknowledged that there will be a delay in the global shipments of its flagship smartphones. The Wall Street Journal now claims that Apple’s long-term strategy is to shift production outside of China.
China’s loss, India’s gain?
Foxconn and Wistron both assemble iPhones in India, where Apple has a production facility. The report claims that Apple is primarily trying to increase its production capacity in Vietnam and India. The two key partners for the assembly of Apple’s AirPods and HomePods product lines in Vietnam are Luxshare and Inventec.
Reputable Apple analyst Ming-Chi Kuo said last month that 40–45% of iPhone production may be located in India. The number is currently much lower, let’s say approximately 5%, but news of Tata Group typing with Wistron has been spreading. Currently, the local market accounts for roughly 80% of the iPhones that are made in India. Tata’s collaboration with already-existing Apple partners, according to Kuo, “may speed the expansion in the proportion of non-China iPhone production.”
The report also mentions that India comes with its fair amount of challenges for Apple. According to report, since each state has a different government, companies are saddled with too many obligations before actually getting into building products. A former Foxconn executive was quoted as saying “India is the Wild West in terms of consistent rules and getting stuff in and out.”