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Apple eyes India output bump as China virus curbs force iPhone maker to look elsewhere

Proportion of iPhones manufactured in India is likely to go up to 6 to 7 percent from 3.1 percent this year, research firm Counterpoint suggested

May 22, 2022 / 09:51 AM IST
(Representative Image)

(Representative Image)

Apple Inc has begun searching for new production hubs outside China including India in the wake of virus curbs snarling supply chains in the Middle Kingdom, The Wall Street Journal said citing people.

The move will likely inspire others to shift hubs too. Moreover, China’s indirect support of Russia for its Ukraine invasion might also wean firms off the Middle Kingdom for manufacturing and key materials.

The Apple move comes as China’s Covid policy has barred its executives and engineers from entering the country and as power outages last year affected the nation as a production hub.

Apple is in talks with some suppliers about expanding in India, seen as the closest to China in terms of population and low operating costs, The Wall Street Journal reported.

The proportion of iPhones manufactured in India is likely to go up to 6 to 7 percent from 3.1 percent this year, research firm Counterpoint suggested.

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Some analysts believe that China-based assemblers may face challenges in setting up shop in India after relations with China took a turn after a clash between the two countries in 2020, news agency ANI reported.

In April, Apple said that it has begun producing the latest generation of iPhones and iPhone 13 series in India. Some analysts say suppliers may not be so comfortable spending massive sums on shifting production at a time of global economic uncertainty, ANI reported.

 
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first published: May 22, 2022 09:18 am
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