Apple will move 25% of its entire iPhone production line to India by 2025 as it looks to diversify its supply chain, JP Morgan analysts said (via Reuters).
Apple currently produces some iPhone models in India, including the iPhone 13 and soon the iPhone 14. Apple's supply chain remains highly concentrated in China, but the company has made efforts to move suppliers and production lines elsewhere.
JP Morgan analysts believe that by late 2022, 5% of iPhone 14 production will be moved to India, with a significant shift taking place three years later. In addition to moving 25% of iPhone production to India by 2025, the analysts expect Apple to move 25% of other product lines outside of China, including AirPods, Mac, Apple Watch, and iPad.
Apple suppliers, including Foxconn, have invested heavily in India with supply chain infrastructure, factories, and training, for the last several years. Apple is expected to begin production of iPhone 14 models in India in the coming weeks, but the company's high priority on secrecy has reportedly complicated plans.
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Moving all or most iPhone production out of China would be a very wise move. Samsung moved all smartphone production out of China in the event China invades Taiwan and sanctions on China means no iPhone will be allowed into the US if it was made in China.
Globalism might already be dead and companies having production in far East will run into trouble. Production needs to move back home asap, that goes for all of the West.
The pandemic along with Russia’s decision to go full crazy and China saber rattling every chance they get on Taiwan hopefully has opened the eyes of every CEO in the US, Europe and beyond that it’s crucial to diversify your manufacturing and if possible bring production home (or as close as possible). Globalism isn’t dead yet, but it’s definitely on life support at the moment. If it gets out of the ICU remains to be seen based on the winds coming out of various regions of the world.
Globalism might already be dead and companies having production in far East will run into trouble. Production needs to move back home asap, that goes for all of the West.
