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China unrest: Apple fasts forwards plans to shift manufacturing to India
TIWN
China unrest: Apple fasts forwards plans to shift manufacturing to India
PHOTO : TIWN

New Delhi, Dec 4 (TIWN) Apple is fast forwarding its manufacturing plans in India and Vietnam in the wake of China unrest over zero-Covid policy which has severely disrupted its supply chain, leading to an acute shortage of new iPhone 14 Pro models.

The Wall Street Journal reported that the company is "telling suppliers to plan more actively for assembling Apple products elsewhere in Asia, particularly India and Vietnam" in order to "reduce dependence on Taiwanese assemblers led by Foxconn".

The China upheaval, which hit its key supplier Foxconn's Zhengzhou factory last month resulting in violent protests, means "Apple no longer feels comfortable having so much of its business tied up in one place," the report said, citing analysts and people in the Apple supply chain.

Apple aims to ship 40-45 per cent of iPhones from India compared with a single-digit percentage currently, according to famed analyst Ming-chi Kuo.

Kuo has predicted that iPhone shipments in the fourth quarter this year are likely to reach around 70 million to 75 million units, nearly 10 million less than market projections before the China turmoil.

The top-of-the-line iPhone 14 Pro and Pro Max models have particularly been hit hard, according to him.

Every fourth iPhone will be made in India by 2025, according to J.P. Morgan.

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