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Apple accelerates move to India

Translate from : Apple fremskynder flytning til Indien

Apple is stepping up efforts to move production of iPhones away from China, and the focus is now on India. According to a recent report by The Wall Street Journal, Apple, along with its suppliers, has a vision to produce more than 50 million iPhones annually in India within the next two to three years. Sources suggest that this could potentially increase to 'tens of millions of units' in the following years.

Last year, global iPhone shipments exceeded 220 million units, as reported by research firm Counterpoint.

If Apple's plans materialize, India could account for over 25% of the world's annual iPhone production. This change marks a significant departure from China's historical dominance as the primary manufacturing hub for iPhones.

The decision to diversify production stems from challenges Apple faces in China, including strict labor regulations and rising tensions in US-China relations. China will undoubtedly remain a crucial manufacturing hub, but Apple's focus on India indicates a strategic shift to reduce risks associated with over-reliance on a single manufacturing location.

Labor-related obstacles, such as restrictive 12-hour workdays, have prompted Apple to explore alternative manufacturing locations. The company aims to navigate these challenges while contributing to India's growing importance in the global tech supply chain. Then you can perhaps allow yourself to be a little skeptical about these kinds of objectives if you also have the employees' well-being in mind. A limit of 12 hours for a working day should be very fair.

From a working environment point of view and general employee policy, one should perhaps be a little critical of companies that think there are too many restrictions on the working environment in China! However, there are of course also other things that come into play in relation to moving production to India.

The geopolitical landscape, particularly the tense relations between the US and China, has accelerated Apple's orientation towards India. This strategic shift is now entering a phase of significant expansion, according to supply chain sources.

As part of this expansion, Apple plans to establish new production facilities and optimize existing ones. The overall goal is to achieve a production capacity of at least 50 to 60 million iPhones annually in India within the next two to three years. This move aligns with Apple's commitment to diversification, resilience and positioning India as a key player in the company's global manufacturing ecosystem.

In summary, Apple's strategic shift towards India is not just a manufacturing divestment, but a transformative initiative to reshape the dynamics of global iPhone production. The coming years will witness a significant chapter in Apple's manufacturing narrative, with India playing a pivotal role in the company's vision for the future of iPhone manufacturing.

Source/ The Wall Street Journal