Apple May Begin Manufacturing 1 out of 4 iPhones in India by 2025, According to analysts

Apple May Begin Manufacturing 1 out of 4 iPhones in India by 2025, According to analysts

According to a new report citing analysts, Apple may begin producing an increasing number of iPhone models in India by 2025. The company already manufactures non-Pro iPhone models in India, such as the iPhone 13, iPhone 12, and iPhone 11. Apple is also rumoured to begin production of the iPhone 14 in India sooner than expected.

According to a new report, the US tech behemoth will increase its emphasis on manufacturing in India. According to Reuters, citing JP Morgan analysts, India could be the next major hub for Apple product manufacturing, reducing the company's reliance on China.

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According to the analysts, led by JP Morgan's Gokul Hariharan, Taiwanese suppliers such as Hon Hai (Foxconn) and Pegatron play an important role in the relocation to India. Analysts anticipate that Apple will also qualify local Indian manufacturing suppliers in the medium to long term.

What’s the Current Share of iPhone Manufacturing in India? 

Since 2017, Apple has collaborated with its Indian suppliers to manufacture several iPhone models. The company now intends to reduce its reliance on China by establishing India as the next bug manufacturing hub. The iPhone 13 is currently being manufactured in India, alongside the iPhone 11, iPhone 12, and other models.

After the COVID-19-induced lockdowns in China hampered its supply chain, Apple wants to shift manufacturing to more locations. The move benefits India, where local suppliers are expected to produce 5-7 percent of all iPhones sold globally this year. According to a Business Standard report, India's contribution will be slightly more than 3% in 2021, up from less than 1.5% in 2020.

Apple’s Manufacturing Plan for India by 2025

According to JP Morgan analysts, one out of every four iPhones will be manufactured in India by 2025. It also expects Apple to shift about 5% of iPhone 14 production to India by late 2022. China is also expected to lose approximately 25% of the manufacturing of Apple's other products, including the Mac, iPad, Apple Watch, and AirPods.

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The Tata Group, one of India's largest conglomerates, is said to be in discussions with Apple's supplier Wistron about establishing a manufacturing plant in India. Tata may join forces by purchasing a stake in Wistron's India operations or establishing a new assembly plant. The deal's structure and details, such as shareholdings, have yet to be finalized.

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Apple is also said to be planning to manufacture the iPhone 14 in India within the next 2-3 months. Historically, Apple has collaborated with suppliers to manufacture the latest iPhone in India after a few quarters. This time, the new iPhone may be manufactured in India within a few months of its global release.

Apple or its suppliers have not officially confirmed the iPhone 14 Make in India plans.