Apple might start making more and more iPhone models in India by 2025, if a new report citing analysts is to be believed. The company is already making its non-Pro iPhone models, such as the iPhone 13, iPhone 12 and the iPhone 11 in India. Apple is also rumoured to start the iPhone 14 manufacturing in India sooner than expected. A new report now claims that the US tech giant will increase its focus on manufacturing in India. Reuters, citing JP Morgan analysts, reported that India could be the next big hub for manufacturing Apple products, reducing company’s dependency on China.
The analysts, led by JP Morgan’s Gokul Hariharan, stated that Taiwanese suppliers such as Hon Hai (Foxconn) and Pegatron play a key role in the relocation to India. In the medium to long term, the analysts also expect Apple to qualify local Indian manufacturing suppliers.
What’s the Current Share of iPhone Manufacturing in India?
Apple has been partnering with its suppliers in India for the manufacturing of several iPhone models since 2017. The company now plans to reduce its reliance on China and make India its next bug manufacturing hub. The iPhone 13 is currently being made in India, joining the likes of the iPhone 11, iPhone 12, etc.
Apple wants to shift manufacturing to more locations after the COVID-19-induced lockdowns in China, which hampered its supply chain. The move can be seen as a boon for India, where local suppliers are expected to make 5-7 per cent of all iPhones sold globally this year. In 2021, India’s contribution stood at a little over 3 per cent and the number was less than 1.5 per cent in 2020, according to a Business Standard report.
Apple’s Manufacturing Plan for India by 2025
JP Morgan analysts claim that one out of four iPhones will be made in India by 2025. It also expects Apple to move about 5 per cent of iPhone 14 production from late 2022 to India. China is also expected to lose about a total of 25 per cent of manufacturing of Apple’s other products, such as the Mac, iPad, Apple Watch and AirPods.
The Tata Group, one of India’s largest conglomerates, is said to be in talks with Apple’s supplier Wistron to set up a manufacturing plant in India. Tata might join hands by buying some equity in Wistron’s India operations or setting up a new assembly plant. The structure of the deal and details such as shareholdings are yet to be finalised.
Apple is also said to be working on making the iPhone 14 in India in the next 2-3 months. Historically, Apple has partnered with suppliers to make the latest iPhone in India after a couple of quarters or so. This time around, the new iPhone could be manufactured in India within a couple of months of its global launch.
Apple or its suppliers have not officially confirmed any details about the iPhone 14 Make in India plans.
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