Apple is aggressively expanding its manufacturing capacity in India as part of its strategy to diversify its supply chain and reduce dependence on China. writes about this CNBC/
According to the publication’s sources, the American company currently produces about 14% of its iPhones in factories in India of partners such as Foxconn.
This figure is twice as high as a year ago. A minister of the Indian government had previously stated that India could produce 25% of all the company’s iPhones in the future. The agency explained that the reorientation towards India was driven by a number of factors.
First, strict anti-coronavirus restrictions in China have caused severe disruptions at Foxconn factories, including the largest factory in Zhengzhou, where the bulk of iPhones are produced. Due to quarantines and worker protests, production was paralyzed and the supply of the new iPhone 14 was endangered.
Secondly, Apple is concerned about rising trade tensions between the US and China, which poses a risk to the company’s business in China. The publication states that the company is accelerating the creation of alternative production centers in Vietnam, Thailand, Indonesia and India to avoid being completely dependent on a single country.
India’s appeal for Apple is driven by the growth of the local middle class and demand for world-class technology. At the same time, the country suffers from a shortage of skilled labor and faces bureaucratic hurdles that it must overcome to become China’s main rival in the high-tech sector.
This is before Apple accelerated There are talks with OpenAI and Google to include artificial intelligence in the iPhone.
Previous iPhone sales decreased In China, almost 20%.
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Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.