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Apple will move 25% of its entire iPhone production line to India by 2025 as it looks to diversify its supply chain, JP Morgan analysts said (via Reuters).

iPhone-14-Pros-in-Hand-Black-Background-Feature.jpg

Apple currently produces some iPhone models in India, including the iPhone 13 and soon the iPhone 14. Apple's supply chain remains highly concentrated in China, but the company has made efforts to move suppliers and production lines elsewhere.

JP Morgan analysts believe that by late 2022, 5% of iPhone 14 production will be moved to India, with a significant shift taking place three years later. In addition to moving 25% of iPhone production to India by 2025, the analysts expect Apple to move 25% of other product lines outside of China, including AirPods, Mac, Apple Watch, and iPad.

Apple suppliers, including Foxconn, have invested heavily in India with supply chain infrastructure, factories, and training, for the last several years. Apple is expected to begin production of iPhone 14 models in India in the coming weeks, but the company's high priority on secrecy has reportedly complicated plans.

Article Link: Apple Expected to Move 25% of All iPhone Production to India by 2025
 
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laptech

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China and India, two of the worlds most populated countires with over 1.4 billion people and two of the worlds cheapest for wages. Labour is extremely cheap in both countries and due to the amount of people in both countries, employers can afford to fire and hire when ever they want because they know there will always be a supply of cheap labour at hand so if employees want to strike, not a problem, just sack them and get immediate replacements. Labour laws are poor in both countries thus it is very easy for employers to take advantage of employees. With that said it's very easy to see why Apple chose India.
 

Scott6666

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All this talk about you can’t manufacture in the US because the US has lost all its manufacturing engineering and infrastructure. Only Asia has that technology.

There couldn’t have been any more manufacturing expertise in India than in the US. Typical corporate lies.
 

hugodrax

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Jul 15, 2007
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Will Apple's margins increase as a result of this production shift to India?

I'm thinking India will have lower production costs (i.e. labor) vs China
Yes cost of labor is significantly lower. just in time now that India is supporting Russia.
 
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ifxf

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I don’t understand why everyone focuses on where the lowest margin part of the phone manufacturing takes place. Why not look at where the chip, battery, camera, glass, etc. factories are located. These provide the knowledge workers important to move a nation’s economy forward.
 
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jimbobb24

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All this talk about you can’t manufacture in the US because the US has lost all its manufacturing engineering and infrastructure. Only Asia has that technology.

There couldn’t have been any more manufacturing expertise in India than in the US. Typical corporate lies.
All that talk is also nonsense. The US still is one of biggest manufacturing countries in the world. I think China only recently overtook US. What has changed is the US doesn’t have as many manufacturing jobs (which is what the statistic is usually about). The US does huge manufacturing with less people using machines and technology instead.

The reason people go to other countries is because our regulations make it too expensive to hire low skilled workers.
 

dampfnudel

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Moving all or most iPhone production out of China would be a very wise move. Samsung moved all smartphone production out of China in the event China invades Taiwan and sanctions on China means no iPhone will be allowed into the US if it was made in China.
 
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seek3r

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All that talk is also nonsense. The US still is one of biggest manufacturing countries in the world. I think China only recently overtook US. What has changed is the US doesn’t have as many manufacturing jobs (which is what the statistic is usually about). The US does huge manufacturing with less people using machines and technology instead.

The reason people go to other countries is because our regulations make it too expensive to hire low skilled workers.
This. The US is absolute leader in things like custom designed automated production, what we arent the leader on is anything that cheap labor still wins out over automation. What gets weird because of that is when we outsource *parts* of supply chains (like chickens being shipped to china to be plucked then shipped back to the US to process). We’re the second largest manufacturer in the world, but, as you said, it’s done with far far far less people and often with JIT dependencies on other countries for the labor intensive pieces.
 
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dampfnudel

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Globalism might already be dead and companies having production in far East will run into trouble. Production needs to move back home asap, that goes for all of the West.
The pandemic along with Russia’s decision to go full crazy and China saber rattling every chance they get on Taiwan hopefully has opened the eyes of every CEO in the US, Europe and beyond that it’s crucial to diversify your manufacturing and if possible bring production home (or as close as possible). Globalism isn’t dead yet, but it’s definitely on life support at the moment. If it gets out of the ICU remains to be seen based on the winds coming out of various regions of the world.
 

laptech

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bit of a coincidence isn't it that Apple pushes to get iphone production done in India and China begins to cause trouble over disputed land in the Himilayas between the border of India and China.
 

WWPD

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Production should be moved to Switzerland, the most politically stable country in the world. Put all those Swiss watch makers to work to meticulously hand craft each iPhone component.
 

jlc1978

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This. The US is absolute leader in things like custom designed automated production, what we arent the leader on is anything that cheap labor still wins out over automation.

Competitiveness requires moving to automation. As long as their is cheap enough labor and transportation costs are small relative to the value of the product or labor is a significant part of the production costs, that work will move elsewhere if done manually. Cheap labor and products that require manual labor of limited skill will eiteh rbe automated if possible or done at the cheapest location.

What gets weird because of that is when we outsource *parts* of supply chains (like chickens being shipped to china to be plucked then shipped back to the US to process).

Actually, that isn't happening. The transportation costs mean it makes no sense, and teh whole rumor satrted when teh US approved several Chinese plants to process chicken and ship to teh US, as long as the chicken as from countries that met certain safety standards.

We’re the second largest manufacturer in the world, but, as you said, it’s done with far far far less people and often with JIT dependencies on other countries for the labor intensive pieces.

Thanks to automation and workforce skills. We even build more BMWs than Germany, for instance.

I suspect, as cell phone move more to SOC designs, you'll see automated assembly of them return in part to the US and otehr countries that now outsource it. Of course, political issues such as manufacturing in countries with large customer bases will also dictate production. I could see China and other countries demand companies produce all of the domestically sold products be made there.

The move to India could be a mix of supply chain diversification and making India's leadership happy.
 
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