Currently, between 5 and 7% of Apple devices are manufactured in India, but the Asian country is confident that the Cupertino giant will increase its production until it reaches 25%. This move would respond to one of the iPhone maker’s efforts to reduce its heavy dependence on China, a country it has relied on, through Foxconn and other partners, for many years.
The news comes to us from Nikkei Asia, which includes the statements of the Indian Minister of Commerce. Piyush Goyal has said that Apple is “another success story”, and has highlighted the company’s growing commitment to his country. Let’s remember that India is trying to become an increasingly attractive alternative to host part of the production of large technology companies.
Apple begins to cross Chinese borders
For decades, Apple has relied on the Asian giant’s industrial capabilities to mass-produce several of the products in your catalog. However, the current situation in the country has begun to put the company’s plans at risk. It is enough to remember that at the end of last year a unexpected announcement that announced delays in the delivery of the iPhone 14.
Although the US firm’s plans to move away from China have been around for a long time, everything seems to indicate that they are accelerating in these times. And, precisely, Goyal’s statements support this hypothesis, although, unfortunately, he does not specify when that supposed 25% of production would be reached within India’s borders. Apple, as usual, has not commented.
According to Financial Times, Tim Cook is a cornerstone in the relationship between Apple and China. It was he himself who, in his time as director of operations of the company, sat the bases of the current supply chain with the countrybut it is now he himself who must take on the challenge of diversifying this elemental piece.
Now everything seems to indicate that the decision to gradually move its production to other countries has been made, but the challenges that lie ahead are enormous. It is not simply a question of replicating the assembly processes in other countries, since a large number of key factors are involved that China has very well underpinned.
For example, the availability of components from other manufacturing partners, access to a large workforce of workers, and wages that are within the ranges the company is willing to pay. Also, local partners and political support to convert certain places into huge factory-cities that will serve to house thousands of workers.
We have to wait to find out if Apple will be able to consolidate its ties with India, a country that, by the way, prepare financial incentives to make that happen. The company, which has been making phones there since 2017, began manufacturing the iPhone 14 on a production line in Chennai. Over time we will know what other devices will begin to be manufactured within the borders of this country.
Images: Naveed Ahmed | Manzana
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