Apple Inc could make one in four iPhones in India by 2025, analysts at JPMorgan said on Wednesday, as the tech giant moves some production away from China amid rising geopolitical tensions and stricter COVID-19 lockdowns in the country .
The brokerage expects Apple to shift around 5% of iPhone 14 production to India, which is the world’s second largest smartphone market after China, by the end of 2022.
It forecasts about 25% of all Apple products, including Macs, iPads, Apple Watches and AirPods, will be manufactured outside China by 2025, up from 5% currently.
Cupertino, California-headquartered Apple has bet big on India as it began iPhone assembly in the country in 2017 through Wistron and later with Foxconn, in line with the Indian government’s push for local manufacturing.
The pandemic hampered supply chain relocation plans for businesses, but with restrictions easing, more companies, including Apple, are ramping up these efforts again this year.
According to analysts at JP Morgan led by Gokul Hariharan, “Taiwanese vendors such as Hon Hai and Pegatron are instrumental in relocating to India. In the medium to long term, we are looking to qualify local India manufacturing suppliers from Apple. Hope you too.” 4 out of 5 for estimation accuracy.
A Bloomberg report earlier this month said Indian conglomerate Tata group was in talks with Wistron to build a joint venture to assemble iPhones in the country amid Apple’s plan to cut production with China. can be installed.
(Reporting by Aniruddha Ghosh in Bengaluru; Editing by Anil D’Silva)