Apple’s New Manufacturing Base is India Instead of China
Technology giant Apple is gradually shifting its production focus away from China and India is preparing to become the new production center. The Indian Minister of Commerce announced that Apple plans to manufacture more of its products in India, with around 25 percent of all its products manufactured in the country.
According to the news of Giz China, Foxconn, the company responsible for the production of iPhone and other Apple products, is increasing its workforce in Chennai, India, in preparation for this transition.
The move comes as part of Apple’s strategy to diversify its manufacturing facilities to minimize the effects of geopolitical tensions between China and the US and uncertainties around the coronavirus pandemic.
According to Reuters, some analysts predict that the goal of producing 25 percent of its products in India can be reached by 2025.
Having some of Apple’s production in India may cost more than having it produced in China, potentially affecting hardware quality. However, the benefits of diversifying production bases are projected to outweigh this.
Apple is making a bigger shift than ever before in its manufacturing strategy from China to India. This move is expected to have a significant global economic impact.
The move represents a huge economic impact for both India and China.
It is estimated that Apple’s production shift in India will generate about five to six billion dollars in direct economic activity over the next five years.