Thursday, March 23rd, 2023

iPhone manufacturing in India to reach 40-50% by 2027

India will produce 45-50 percent of Apple’s iPhones by 2027. In China 80-85 percent of iPhones were produced in 2022. India and Vietnam are to become the biggest beneficiaries of smartphone supply chain migration out of China. India accounted for 10-15 percent of iPhones’ overall production capacity at the end of 2022. But the actual output so far has been less than 5 percent. However, the speed of supply chain migration to India will be accelerated in the future because of the need for diversifying risks in light of uncertainties of China’s pandemic control.

Samsung also has assembly plants in Indonesia and South Korea.

While pandemic uncertainties in China and geopolitical risks threaten Apple’s supply chain;  it has increased production capacity in India and Vietnam. Some Apple Watch probably will also be assembled outside of China as well.  As Indian policy encourages local manufacturing, Apple wanted to gradually increase manufacturing in India. They believe it will help local consumers to identify with its brand and help to expand its market share there. Moreover, Samsung’s cell phone production capacity has been moved out of China, mostly shifted to Vietnam since 2019. Samsung also has assembly plants in Indonesia and South Korea. Samsung is also increasing output in India in order to capture the local market.

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