New Delhi: Apple Inc may make one out of four iPhones in India by 2025, J.P.Morgan analysts said on Wednesday, as the tech giant moves some production away from China amid mounting geopolitical tensions over the country.
The company is to move about 5% of iPhone 14 production to India, which is the world’s second-biggest smartphone market after China.
It is also estimated that about 25% of all Apple products, including Mac, iPad, Apple Watch and AirPods, to be manufactured outside China by 2025 from 5% currently.
Cupertino, California-headquartered Apple has bet big on India since it began iPhone assembly in the country in 2017 via Wistron and later with Foxconn, in line with the Indian government’s push for local manufacturing.
The pandemic hampered supply chain relocation plans for businesses, but with restrictions easing, more companies, including Apple, are reaccelerating these efforts this year.
Since Apple started manufacturing in India in 2017, Apple’s robust performance has been driven by a boost in production by three of its contract manufacturers, Foxconn, Wistron, and Pegatron, from the second half of 2023 with the production of iPhone 15 to cater to the growing Indian market and its exports.
All three iPhone manufacturers are part of the Centre’s production-linked incentive scheme for smartphone manufacturing.