Apple eyes India, Vietnam to replace China as its key manufacturer, Telecom News, ET Telecom

HONG KONG: China, still a major Apple supplier, could lose its status as a major iPhone maker as Apple looks to India and Vietnam to bolster its supply chain, media said Saturday. reported to

Foxconn, Apple’s biggest supplier, has “quietly finalized” plans to move some of its Apple iPad and MacBook production to Vietnam, reports the South China Morning Post.

Apple has reportedly cut orders, citing weakening demand, as it could hit Chinese suppliers amid the Covid chaos.

At the moment, China is far ahead in the world map of Apple product manufacturing.

According to a Bloomberg analysis of Apple’s global supply chain, 121 (17.7%) of Apple’s suppliers in 2022 will be located in China, making China the second largest global source of Apple’s supply chain after the United States. It is

India is in 8th place, with 2 companies (0.3%) and 278 out of 12,248 facilities worldwide (2.3%).

Vietnam ranked 14th with 2 companies (0.3%) and 160 facilities (1.3%).

Apple aims to ramp up manufacturing in India amid Covid-related supply chain issues in China.

Apple is pushing ahead with manufacturing plans in India and Vietnam following concerns in China over its zero-Covid policy that has severely disrupted its supply chain, leading to severe shortages of new iPhone 14 Pro models last year. increase.

The Wall Street Journal reported that the company “has made plans to more aggressively plan to assemble Apple products elsewhere in Asia, particularly India and Vietnam,” in order to “reduce its reliance on Foxconn-led Taiwanese assemblers.” I’m telling you.”

Kuo said Apple is targeting 40 to 45 percent of iPhone shipments from India, up from the current single-digit rate.

According to JP Morgan, one in four iPhones will be manufactured in India by 2025.

Backed by ease of doing business and a friendly local manufacturing policy, Apple’s ‘Made in India’ iPhones could account for nearly 85% of all iPhone production in the country by 2022, according to industry experts there is.

Apple started manufacturing iPhones in India for the first time in 2017 with the iPhone SE.

Some of the most advanced iPhones, including the iPhone 11, iPhone 12 and iPhone 13, are manufactured at Foxconn’s facilities, while the iPhone SE and iPhone 12 are assembled at the Wistron factory in the country.

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