Apple is considering shifting some iPad production to India and this is the reason behind it
India is looking into bringing some Apple iPad production from China to the country. The tech titan is said to be in talks with officials. There are no concrete plans, but if the effort is successful, Apple’s footprint in the country will grow.
Apple announced earlier this year that production of its flagship iPhone 14 had begun in southern India. For several years, the tech giant has been manufacturing older models of the iPhone in the country. The tech giant plans to diversify more of its supply chain away from China come in the wake of nationwide protests over the last two weeks in response to Beijing’s strict zero-Covid policy.
Apple warned in early November that iPhone shipments would be delayed due to Chinese lockdowns, and analysts have reduced iPhone estimates for the crucial holiday quarter. The Wall Street Journal reported over the weekend that Apple is actively looking to shift production away from China and into other Asian countries such as India and Vietnam. However, sources warn that a scarcity of highly skilled talent and individuals with experience building highly complex devices such as the iPad could stymie these plans in India. The foreign policy backdrop does not help either, with tensions between India and China rising.
In recent years, the two countries have clashed over territorial disputes, resulting in increased military presence along the India-China border. Loop Ventures’ Gene Munster estimates that 10% of iPhones are manufactured in India, but he expects production to increase slowly. “I believe that in five years, 35% will be manufactured in India,” Munster added. “I believe Apple will expand iPhone production outside of India and China over the next five years.” Perhaps Vietnam, Malaysia, and the United States.” “While Apple has made efforts to move production out of China, in our opinion, India still accounts for less than 5% of total iPhone 14 production and is likely to help only to a limited degree at this time,” Piper Jaffray’s Harsh Kumar wrote in a note to clients today.