Jakarta, CNBC Indonesia – Apple is said to be assembling one of the four iPhones it sells in India by 2025. This is the impact of the various problems they face in China.
JP Morgan analyst, as quoted Reuters, said iPhone production in India will begin at the end of 2022. About 5% of the iPhone 14 is expected to be supplied from Apple’s factory in India.
India is Apple’s new manufacturing location because the South Asian country is the second largest smartphone market in the world, after China.
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The reason Apple is shifting manufacturing from China is the various supply chain constraints they face due to the policy confinement The Chinese government is strict to stop the spread of Covid-19.
Furthermore, Apple is also facing increasingly complicated geopolitical problems due to economic competition between the United States and China and growing tensions in the Taiwan Strait.
JP Morgan said Apple may also move some of its production of other devices, including Macs, iPads, Apple Watch and AirPods, out of China.
Currently, only 5% of Apple products are assembled outside of China. By 2025, JP Morgan expects factories outside of China to produce 25% of the products Apple sells.
Apple first produced the iPhone in India in 2017 with Wistron as its manufacturing partner, which Foxconn then continued. The production of iPhones in India is the result of pressure from the Indian government to increase the local production of mobile phones.
Apple’s production relocation plan was hampered by supply chain problems during Covid-19. However, in line with the easing of business restrictions, Apple and other electronics companies have decided to take a step forward this year to carry out the relocation process of their factories.
“Taiwanese suppliers such as Hon Hai and Pegatron played a key role in the move to India. In the medium and long term, we expect Apple to start using local suppliers as well,” said JP Morgan analyst Gokul Hariharan.
Report from Bloomberg previously, Indian conglomerate Tata Group was in discussions with Wistron to form a joint venture to assemble iPhones in India.
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