Mehul Reuben DasDec 07, 2022 15:09:24 IST
Apple is planning to move the production of some of its iPads away from China and into India. Apple already produces some of their older iPhones and a significant portion of the iPhone 14 series in India.
As per a CNBC report, the tech giant is already having discussions with officials of the Indian government to set up additional production units and establish the required supply chains and logistics. Although there are no concrete plans to go ahead with this as of now, if successful, it would be massive for India’s Make in India initiative.
Earlier this week, reports had surfaced that Apple wants to move more of its production facilities away from China, in its ongoing China-Plus-One plan. The tech giant’s ambitions to diversify more of its supply chain away from China follow protests across the country over the past two weeks amid Beijing’s strict zero-Covid policy. Apple warned in early November that iPhone shipments would be delayed due to the lockdowns in China, and analysts have been trimming iPhone estimates for the crucial holiday quarter. Because of this Apple is preparing itself for a major hit to its revenue targets.
The only challenge standing in India’s way is the decades-old expertise in logistics, supply chain and technically sound and skilled talent that India lacks for the iPad. These problems have the potential to slow down Apple’s plan to move the production of the iPad in India, to other Asian countries, like Vietnam.
The foreign policy backdrop also doesn’t help, with tensions growing between India and China. The two countries have squared off in recent years over territorial disputes resulting in escalated military presence at the India-China border.
As for the iPhone 14 being manufactured in India, the country still accounts for less than 5% of total global iPhone 14 production. However, several analysts believe that in the next 5 years, the figure for the latest flagship from Apple will increase to over 35 per cent.