September 24, 2022


A man holds an iPhone 14 while the new models of Apple Inc. go on sale at an Apple store in Beijing, China, September 16, 2022. REUTERS/Thomas Peter

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Sept 21 (Reuters) – Apple Inc ( AAPL.O ) could produce one in four iPhones in India by 2025, JPMorgan analysts said on Wednesday, as the tech giant moves some production from China amid rising geopolitical tensions and strict COVID-19 19 quarantine in the country.

The brokerage expects Apple to move about 5% of iPhone 14 production from late 2022 to India, the world’s second-largest smartphone market after China.

It is also estimated that around 25% of all Apple products, including the Mac, iPad, Apple Watch and AirPods, will be manufactured outside of China by 2025, up from 5% now.

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Cupertino, California-based Apple has been betting on India since it began assembling iPhones in the country in 2017 through Wistron ( 3231.TW ) and later with Foxconn ( 2317.TW ), in line with the Indian government’s push for local manufacturing.

The pandemic has hampered supply chain relocation plans for businesses, but with restrictions easing, more companies, including Apple, are re-accelerating these efforts this year.

“Taiwanese suppliers such as Hon Hai and Pegatron are playing a key role in the move to India. In the medium to long term, we also expect Apple to qualify local manufacturing suppliers in India,” said JPMorgan analysts led by Gokul Hariharan, rated 4 out of 5 for accuracy assessment.

A Bloomberg report said earlier this month that Indian conglomerate Tata Group was in talks with Wistron to set up a joint venture to assemble iPhones in the country amid Apple’s plans to reduce its manufacturing backlog with China. [nL1N30G096] read more

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Reporting by Aniruddha Ghosh in Bengaluru; Editing by Anil D’Silva

Our standards: Thomson Reuters Trust Principles.



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