Apple considering major shift of iPhone production from China to India

Apple is seriously examining the feasibility of shifting nearly a fifth of its iPhone production capacity from China to India and scaling up its Indian manufacturing revenues, through its contract manufacturers, to around $40 billion over the next five years, The Economic Times reports, citing “officials familiar with the matter.”

Indian Prime Minister Narendra Modi
Indian Prime Minister Narendra Modi takes selfie with students while visiting in China
The Economic Times:

Prime Minister Narendra Modi met top executives of Apple, Samsung and homegrown phone maker Lava on December 28 last year, which kick-started the process.

“India isn’t a big market for Apple as the company sells only a fraction of its total output in India. It is actually looking at India as a base to manufacture and export, essentially diversifying its production out of China,” the official said…

Apple is a top investor in China. In 2018-19, it produced merchandise valued at $220 billion in China, of which it exported goods worth $185 billion, according to industry experts. It directly and indirectly employs about 4.8 million people there.

MacDailyNews Take: Better late than never. And, not just with iPhone production, either. India, among many other countries, stands to benefit, as does the integrity of supply chains everywhere. As we wrote last week, China should get used to this idea.

We’ve long said that Apple has “too much dependence on one country for assembly.”

As we wrote last June, “File under: Don’t Put All your Eggs in One Basket.”

Better late than never on Apple’s diversification of production/assembly points in order to mitigate risk and, potentially, increase competition which would lower manufacturing costs.MacDailyNews, July 17, 2019

The company will emerge stronger than ever, especially as they continue to diversify production instead of being almost entirely dependent on China.MacDailyNews, April 16, 2020

11 Comments

    1. China is toast.

      Xi Jinping personally met with WHO Director-General Chinese Puppet Tedros Adhanom Ghebreyesus on January 21 to request that he withhold information about human-to-human transition and delay the declaration of a global pandemic, according to German magazine Der Spiegel. The news comes amid rising sentiment that China should be held financially responsible for the pandemic.

      “The BND’s verdict is harsh: At least four, if not six, weeks have been lost in Beijing’s information policy in the fight against the virus,” Der Spiegel reports. (BND is the native German acronym for its Federal Intelligence Service)

      Four to six weeks of additional preparation time could have avoided the global pandemic entirely, according to a study published in early March. Researchers at the University of Southampton found that if China had acted and gone public with its information just three weeks sooner, it could have reduced spread of the disease by as much as 95%.

      1. As a native german speaker, may I please tell you exactly the opposite is true – the BND hat NOT AT ALL confirmed anything like this but reported there is nothing like this written in in above link to Spiegel. Your comment is pure nonsense propaganda. One one not lazy easily to check for themselves with Google Translate (or similar). Sight, you US need help.

        1. I speak German. Not only that, I can read it, too – unlike you.

          Here are the last two paragraphs of the Der Spiegel that you either failed to read, did not understand, or are just plain lying about.

          According to the BND, China – at the highest level – pushed the World Health Organization (WHO) to delay a global warning after the virus had broken out. On January 21, China’s leader Xi Jinping asked WHO chief Tedros Adhanom Ghebreyesus to hold back information about a human-to-human transmission and to delay a pandemic warning.

          The BND estimates that China’s information policy has lost four to six weeks to fight the virus worldwide.

      2. Two problems with the Der Spiegel story:

        There is no evidence that the telephone call ever occurred. The paper cites confidential sources within the BND, which has not confirmed the story. The WHO not only denies the content of the call, but that a January 21 conversation even occurred. On that date, the Secretary-General was in Poland attending the commemoration at the Nazi death camps. Indeed, WHO states unequivocally that the agency and Chinese leaders have never had a telephone conversation. I have trouble believing they would say that if actual evidence to the contrary existed.

        More importantly, the claim is that China asked WHO to suppress the news of human-to-human transmission in a call on January 21, the day after China had confirmed such transmission on January 20.

        https://www.theguardian.com/world/2020/jan/20/coronavirus-spreads-to-beijing-as-china-confirms-new-cases

        This isn’t just a lie. It is not even a facially credible lie.

  1. India is hopeless the corruption is worse like Brazil, Apple in time 5 years, should be looking at two different geographical areas outside southeast Asia and average the margins between the three areas.

  2. The intelligence agencies of the world should sign a pact to actively work together to overthrow that group of evil Chinese gangsters who call themselves the Chinese Communist Party. It’s bad enough the murder and misery that they’ve inflicted on their own people over the decades but now, with their detestable self-serving behaviour, they’ve poisoned the world causing thousands of needless deaths and untold suffering, not to mention economic havoc.

    At the very least, the rest of the world should unite to strangle China economically by refusing to have anything to do with the CCP. If we do nothing but wring our hands and gripe about China once the Corona virus crisis is over then we invite this group of sinister old men to once again expose us to the calamity of another global pandemic.

    1. What a dumbass, the greedy American CEO, shot have themselves in the head no different than Google serving up a functional smartphone OS to Asia, Elon couldn’t help himself that factory in China open for business, the Chinese are taking everything out the back door, they probably couldn’t believe their luck Tesla Peking Duck served to order with Powerwall on the side.

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