The decision by Apple is part of the brand’s decision to shift its iPhones, iPads, and Mac production to Southeast Asian countries including India and Vietnam.
And even though Indian manufacturing and its related regulatory systems still require further refinement to make it easier to do business in the country, Apple’s decision will further boost New Delhi’s ambitions to become the manufacturing hub of the world.
Of interest is the company’s decision at a time the Biden administration is seeking to ease trade tensions between the United States and China.
According to analysts familiar with Apple’s decision, the Cupertino headquartered American multinational is planning to start making the iPhone 12 series in India as early as the Spring.
Apple currently depends on its Taiwanese partners Foxconn and Wistron to produce iPhones, including the iPhone 11 series and the iPhone XR.
Arvian Research meanwhile states that India has emerged as the second-largest production base for the iPhone, and its business for calendar year 2020 registered 60% year on year growth in India while the festive quarter, which saw the Apple India online store go live just ahead of the Dussehra and Diwali festivals, registered a 100% year on year growth.
“It is interesting to note that Apple has doubled its market share in the Indian smartphone space during the winter quarter. This is primarily due to the stellar performance of devices like Apple iPhone 12, Apple iPhone 11 and the iPhone XR. It helped the company to garner 4% of the market share,” an Arvian Research source states.
According to sources, Apple also plans to start the production of iPads in Vietnam as early as the middle of this year. The same sources indicate that Apple will also shift the production base of products including earphones, smart speakers, and computers out of China as part of the company’s ongoing diversification strategy.
It is understood production of MacBooks will also be shifted to the Southeast Asian country at some point this year, and that Mac mini production has already been moved to Malaysia.
“There are several other tech companies that want to shift production bases out of China. Imagining it two years ago was impossible, but it can be done now,” a supply chain manager told the publication.
Apple suppliers are also following the shift and are looking to move to Vietnam – leading Apple supplier Foxconn has already invested US$270 million in a Vietname based subsidiary and Luxshare Precision Industry is also ramping up production in the country.
This article first appeared in the NFA Post and is republished with permission
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