iPhone production in India will hit 25% of global output by 2025, says analyst

3 days ago 13

iPhone production in India will increase to around 25% of total global output by 2025, according to a new analyst report. The report suggests a similar percentage of other Apple products will be made outside China by the same year.

We’ve seen a number of signs recently that India is growing increasingly important to Apple as a second key manufacturing hub, as the company continues efforts to reduce its dependence on China …

Background

Apple is massively dependent on China as a manufacturing and assembly hub. The large ecosystem of suppliers that has grown up in the country has made production of Apple products a tightly integrated operation, which is difficult to replicate elsewhere.

However, it has been increasingly obvious that Apple’s dependence on China is now the company’s single greatest liability. The iPhone maker is forced to comply with laws that directly contradict the company’s own stated values; it has seen production disrupted by both trade wars and COVID-19 lockdowns; and the nightmare scenario of China invading Taiwan has shifted from the unlikely to the scarily plausible – including military rehearsals.

Apple has for many years been working on diversifying production, and has more recently been accelerating these efforts. India is at the forefront of this initiative.

iPhone production in India ramping up rapidly

When Apple first started iPhone production in India, it was only the (original) iPhone SE, and only models for sale within the country. Since then, the range of models has gradually been expanded, with the iPhone 13 joining the lineup earlier this year.

Foxconn is Apple’s lead supplier in the country, responsible for all of the iPhone 13 production, while Wistron makes the iPhone SE and iPhone 12. Foxconn will this year add the iPhone 14 to the list, with production expected to begin within weeks.

It has previously been reported that next year, production of the iPhone 15 will begin simultaneously in China and India, something Apple had initially hoped would begin with the iPhone 14 launch this year.

Other Apple production also rapidly moving out of China

Reuters cites a  J.P.Morgan analyst note.

Apple may make one out of four iPhones in India by 2025, J.P.Morgan analysts said on Wednesday, as the tech giant moves some production away from China, amid mounting geopolitical tensions and strict COVID-19 lockdowns in the country […]

It is also estimating about 25% of all Apple products, including Mac, iPad, Apple Watch and AirPods, to be manufactured outside China by 2025 from 5% currently.

The paper says that the analyst concerned has an 80% reliability rating.

Lessening Apple’s dependence on China may not solve all of its human rights issues, however. Just this month a number of major VPN services shut down service in India following a new law that would have forced them to breach their own privacy standards – and would be impossible for companies who don’t keep logs of customer activity.

The law also applies to iCloud Private Relay, which is effectively a VPN service used only for Safari.

Apple has not yet commented on its own planned response, but we have reached out to the company and will update with any response.

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