Apple is reducing its manufacturing reliance on China: Here's how
Apple has had an unusually positive relationship with China compared to other US tech giants. However, the company is now looking beyond the dragon. China is home to 90% of Apple's products, including iPhones, iPads, and MacBooks. The company wants to bring that number down and expand its manufacturing footprint to other countries. India is an integral part of Apple's expansion plans.
Why does this story matter?
Apple has a vast manufacturing and assembly operation in China. Something the company has built over more than two decades. The growing tensions between China and the US have, however, made it hard for Apple to put its faith in the former. India has emerged as an attractive alternative for Apple. The upcoming Apple stores in Mumbai and Delhi are a testament to that.
Apple makes 7% of total iPhones in India
Apple has been ramping up its production in India. In the last fiscal, the company assembled over $7 billion worth of iPhones in India. Per Bloomberg, the company currently makes 7% of total iPhones in India. Compared to 1% in 2021, this is a massive jump. Of course, it dwarfs in comparison to China's numbers, but it shows Apple's focus on India.
Apple could make 25% of iPhones in India by 2025
Apple's operation in India has been evolving at a rapid pace. The company started by making low-end iPhones in 2017. Since then, Apple has roped in its chief assembly partners from Taiwan, Foxconn, Pegatron, and Wistron, to build devices in India. Some believe that Apple could move as much as 25% of iPhone production to India by 2025.
iPhone 15 could be shipped from India and China simultaneously
Apple usually makes its first batch of iPhones in China, and then gradually starts manufacturing in India. This could change with the upcoming iPhone 15. The tech giant is expected to ship iPhone 15 from both China and India simultaneously. That will be a first for the firm. The process of making iPhone 15 casings has already begun in the country.
Apple wants to make MacBooks in Thailand
Apple's expansion plans are not limited to India. The company is in talks with suppliers in Thailand to make MacBooks in the country. The Sino-US trade tensions have forced the company to diversify its manufacturing and assembly operations. Ireland, Malaysia, and Vietnam have also emerged as attractive alternatives. But India still remains the company's main priority.
