JPM anticipates that Apple could relocate a quarter of iPhone manufacturing to India by 2025

September 22, 2022 1:41 am

Apple could make a quarter of its iPhones in India by 2025, as the tech giant shifts some production from China, JP Morgan analysts said on Wednesday.

The brokerage expects Apple to move about 5% of iPhone 14 production from late 2022 to India, the world's second-biggest smartphone market.

About 25% of all Apple products, including Macs, iPads, Apple Watches and AirPods, are expected to be produced outside China by 2025, up from 5% today, according to analysts.

Although Apple's main production partners Foxconn, Wistron, and Pegatron have established bases in India, the manufacturing scale in India is still tiny compared to China.

India is setting up an enabling environment to give a massive push to electronics manufacturing in the country, with a big eye on exports, according to Economic Times. 

As part of its "Make in India" plan, the government has asked Apple to make $50 billion worth of products every year in India over the next 5–6 years. This will include expanding its locally made products beyond the iPhone, such as Macbooks, iPads, Air pods and watches.

Earlier this month, a Bloomberg report said that Indian conglomerate Tata Group was in talks with Wistron to establish a joint venture to assemble iPhones in the country amid Apple's plans to cut production lag with China.

Apple's move is in response to mounting concerns about geopolitical tensions and pandemic-induced supply chain disruptions involving China in recent years.

A small portion of Apple’s latest iPhones will be made in India, while part of Google’s newest Pixel phone production will be done in Vietnam. Earlier this year, Microsoft shipped Xbox consoles from Ho Chi Minh City. A few years ago, all of these products were made in China.