Posted ByTechViewApple’s reliance on China is well known, since the nation accounts for a substantial portion of its gadget production. This reliance has put growing strain on the company’s supply chain in recent weeks. Zhengzhou, commonly known as iPhone City, saw unrest on many fronts, causing manufacturing of the iPhone 14 Pro and Pro Max to suffer. Apple has announced that shipments of its flagship phones would be delayed across the world. According to The Wall Street Journal, Apple’s long-term strategy is to shift production away from China.
China loses, India gains?
Apple has a manufacturing footprint in India, with Foxconn and Wistron building iPhones there. According to the source, Apple intends to increase its manufacturing capabilities primarily in two countries: India and Vietnam. Apple has two primary assembly partners in Vietnam, Luxshare and Inventec, for the AirPods and HomePods lines of goods.
Covid-19 has caused significant disruption in China, and Apple has had to suffer some of the consequences. According to the source, Apple has already instructed its manufacturing partners to try to conduct more work outside of China.
Ming-Chi Kuo, a well-known Apple analyst, predicted last month that India may account for 40-45% of iPhone manufacture. Currently, the proportion is significantly lower — say, about 5% — but news of Tata Group typing with Wistron is getting traction. Currently, about 80% of iPhones made in India are for the local market. Tata’s collaboration with existing Apple partners, according to Kuo, “may expedite the expansion in the share of non-China iPhone production.”
According to the research, Apple would face a number of obstacles in India. According to the research, because each state has its own administration, businesses are burdened with too many commitments before even beginning to develop items. According to a former Foxconn executive, “India is the Wild West in terms of consistent rules and getting items in and out.”
The lengthy journey ahead
Because China remains an important element of Apple’s production ambitions, the entire transition might take three to five years.
“Finding all the elements to construct at the scale Apple requires is not straightforward,” said Kate Whitehead, a former Apple operations manager who now runs her own supply-chain consulting business. One of the primary reasons Apple relies on China is that it has political stability as well as a vast workforce. Not to mention that China is a significant market for Apple’s products.
China’s stringent Covid-19 restrictions have also been cited as a cause for Apple’s decision. An expert described China’s Covid-19 regulation as “an utter gut punch to Apple’s supply chain,” telling the Wall Street Journal that “this last month in China was the straw that broke the camel’s back for Apple in China.”