Published on November 1, 2023, 7:41 pm
Image source: Fox News
Apple Plans to Double iPhone Production in India by 2024
Apple is set to double its iPhone production in India over the next three years, according to noted analyst Ming-Chi Kuo. This move comes as Apple aims to reduce its reliance on China and take advantage of India’s emergence as a high-tech manufacturing and assembly hotspot.
In recent years, India has witnessed significant growth in its manufacturing and technology sectors, with the Indian government encouraging local production. Analyst Ming-Chi Kuo predicts that by 2024, 20-25% of global iPhone shipments will be made in India, compared to the current 12-14%.
There are several factors contributing to Apple’s decision to increase production in India. Firstly, Foxconn, Apple’s leading manufacturing partner, continues to expand its operations in the country. Additionally, Indian conglomerate Tata Group recently acquired Wistron’s iPhone production lines, marking the first time that iPhone assembly will be handled by an Indian business.
The $125 million acquisition of Wistron’s facilities strengthens Apple’s relationship with the Indian government and paves the way for future sales growth. Furthermore, Luxshare, another Chinese partner of Apple involved in iPhone production, has rapidly expanded its operations in India. Luxshare is expected to assemble three out of four iPhone 15 models and will play a crucial role in Apple’s diversification strategy.
India’s efforts to reduce its trade deficit with China have prompted the implementation of a new program that closely monitors imports from trusted hardware providers. As part of this initiative, Apple has been granted permission to import laptops, tablets, and computers into the country.
Kuo believes that as Foxconn focuses more on Indian production and diversifies its partnerships with companies like Luxshare, its existing manufacturing facilities in China will experience decreased production scale by 2024.
In terms of future development, Kuo anticipates that Apple will begin designing a new iPhone model in India by 2024, starting with the iPhone 17. This decision is driven by the perceived low-risk nature and relatively simple design of the standard iPhone.
Overall, Apple’s plan to double iPhone production in India reflects its efforts to mitigate dependency on China while capitalizing on India’s growing manufacturing capabilities. As Apple expands its operations in India, this move is expected to benefit future sales and contribute to the company’s long-term growth strategy.
Original article posted by Fox News