According to the Wall Street Journal, Apple is "instructing suppliers to plan more actively for assembling Apple products elsewhere in Asia, particularly India and Vietnam," in order to "reduce reliance on Taiwanese assemblers led by Foxconn."
The China upheaval, which resulted in violent protests at Apple's key supplier Foxconn's Zhengzhou factory last month, means "Apple no longer feels comfortable having so much of its business tied up in one place," according to the report, which cited analysts and people in the Apple supply chain.
According to renowned analyst Ming-chi Kuo, Apple aims to ship 40-45 percent of iPhones from India, up from a single-digit percentage currently.
According to Kuo, iPhone shipments in the fourth quarter of this year will be around 70 million to 75 million units, nearly 10 million less than market projections prior to the China turmoil.
According to him, the top-of-the-line iPhone 14 Pro and Pro Max models have been particularly hard hit.
According to J.P. Morgan, every fourth iPhone will be manufactured in India by 2025.
Apple earlier this year began production of the new iPhone 14 in India, a first for the tech giant as it seeks to reduce reliance on China by shortening the manufacturing period of new iPhones in the country.
According to industry experts, Apple's 'Make in India' iPhones will potentially account for close to 85 percent of the country's total iPhone production this year, owing to the ease of doing business and friendly local manufacturing policies.
According to market intelligence firm CyberMedia Research, iPhone imports to India are expected to fall to 15% this year (from 50% in 2019), while domestic manufacturing by the Cupertino-based tech giant is expected to increase significantly to 85%. (CMR).
With the iPhone 14 series, Apple's iPhone production in India is expected to increase from 7 million iPhones in 2021 to 12-13 million iPhones in 2022.
According to CMR, the contribution of domestic iPhone manufacturing in India increased from 50% in 2019 to 73% in 2021.
Meanwhile, the percentage of imported iPhones to India fell from 50% in 2019 to 45% in 2020, 27% in 2021, and around 15% this year, indicating that Apple has made a significant contribution to India's boom.
Apple began manufacturing iPhones in India in 2017, with the iPhone SE.
The tech giant manufactures some of its most advanced iPhones in the country, including the iPhone 11, iPhone 12, and iPhone 13, at the Foxconn facility, while the iPhone SE and iPhone 12 are assembled at the Wistron plant.
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