ASIATODAY.ID, JAKARTA – Apple will move a quarter of iPhone production to India in the next two to three years.
Quoting from gizchina, this indicates that around 50 million iPhones will roll off the production line in India every year. The reason for this move is due to geopolitical problems between Apple and China. Although in the future China will still be the dominant production party.
This step in Apple’s diversification strategy is clearly an attempt to mitigate risks and build a more geographically balanced supply chain.
Previously, iPhone production in India was far behind China. However, the launch of the iPhone 14 marked a turning point, with production starting simultaneously in both countries.
Apple’s initial foray into production in India faced challenges, particularly from local unions who opposed 12-hour work shifts.
Despite these initial obstacles, in 2023 there will be a significant change where more iPhone 15 units will be produced in India than any other model. Moreover, for the first time, Apple successfully launched an iPhone made in India on the same day as its global launch.
Foxconn, Apple’s main manufacturing partner, is showing its commitment to India by building a new factory in Karnataka state, which is scheduled for completion in April 2024.
Additionally, reports suggest there are plans to build another large factory, further strengthening India’s role in Apple’s global production network. This shift has many benefits for Apple and India.
As for Apple, this reduces dependence on a single production source, thereby reducing the potential for disruption and geopolitical risk. Apart from that, the benefits that Apple can experience are lower labor costs to increase production efficiency.
Meanwhile, for India, the entry of Apple production means job creation and significant economic growth, thereby strengthening the manufacturing sector in the country. (ATN)
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