Apple is Moving iPhone Production Out of China
Apple has said that most iPhones sold in the US are no longer made in China.
Instead, they’re now being made in India and Vietnam. This is because of rising trade
tensions with China and to avoid extra import taxes.
India is Becoming a Big iPhone Factory
Apple is now making more and more iPhones in India. Here’s what’s happening:
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In 2022, the number of iPhones made in India increased by 65%, and their total value went up by 162%.
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Apple’s partners like Foxconn, Pegatron, and Tata are building iPhones in India.
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Foxconn plans to invest over $1.2 billion in India and create 100,000 jobs.
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Tata has taken over one of Apple’s factories and has already exported iPhones worth over $1.7 billion.
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By 2025, Apple wants 1 out of every 4 iPhones to be made in India, and by 2027, it could be half.
Vietnam is Helping Too
India is making most iPhones, but Apple is also shifting the production of other products like
iPads, MacBooks, Apple Watches, and AirPods to Vietnam.
Why Apple is Leaving China
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Apple’s sales in China dropped by 2.3% recently.
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Lockdowns and trade tensions made it hard to make iPhones in China.
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Apple was losing around $1 billion per week during peak production delays.
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The US government might also charge Apple $900 million in extra taxes if they keep making iPhones in China.
What’s Next?
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Apple plans to start making the iPhone 17 in India (a big first).
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Apple also opened retail stores in Mumbai and Delhi and wants to open three more by 2027.
What This Means for India
This is great news for India:
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More jobs.
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India becomes a big part of the tech supply chain.
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Big boost to the ‘Make in India’ movement.
But India still needs to improve quality control and factory infrastructure to fully match
China.