iPhone: According to an analysis by JP Morgan, Apple is going to shift 5 percent of its new iPhone 14 production to India by the end of this year and 25 percent by 2025, due to the doubling of local manufacturing of IT products in India.
Analysts had previously predicted that Apple would cut the production period of its new iPhones in India by barely six weeks or so from the production cycle in China this year. Next year, the Apple iPhone 15 could see its production at Foxconn and Wistron manufacturing facilities in India, along with China.
According to a JP Morgan report, India's iPhone supply chain has historically only supplied older models. Interestingly, Apple has requested that EMS vendors manufacture the iPhone 14/14 Plus models in India in the fourth quarter of 2022 within two to three months of the start of production in mainland China.
The report said, "The very short gap indicates the growing importance of India's production and the potential for higher iPhone allocation for India's manufacturing in the future. We believe that more iPhone Pro series (done by EMS vendors) will be available in the market." Due to complex camera module alignment and high local market demand for the iPhone 14 series (tax savings), Apple now produces only iPhone 14/14 Plus models in India."
According to the report, Vietnam will contribute 20 percent of all iPad and Apple Watch productions, 5 percent of MacBooks, and 65 percent of AirPods by 2025. Buoyed by the ease of doing business and friendly local manufacturing policies, Apple's 'Make in India' iPhones will likely account for about 85 percent of its total iPhone production for the country this year.
According to intelligence firm CyberMedia Research (CMR), iPhone imports in India are expected to drop to 15 percent this year (from 50 percent in 2019), while the domestic manufacturing market by the Cupertino-based tech giant is set to go up to 85 percent.
With the iPhone 14 series, Apple's iPhone production in India has grown by over 71 percent (Y-o-Y) to touch a new milestone of around 12 million iPhones in 2022 from 7 million iPhones in 2021, CMR said. marks significant growth.