India To Become iPhone Manufacturing Hub, Thailand To Assemble MacBook: Apple Analyst

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India To Make iPhone While Thailand To Assemble MacBooks

Apple Inc. seems to be steadily shifting its production base out of China. While there are several attractive manufacturing hubs, India and Thailand may have emerged as the most favorable destinations for the iPhone maker.

 

Apple is reportedly going to move a major portion of the iPhone production to India, while some assembly lines in Thailand will build the MacBook laptop. It is possible that Apple is shielding itself from potential troubles in China. In order to safeguard its supply chain from regional uncertainties and global hostilities, the company is looking at new destinations. And countries like India, Vietnam, and Thailand appear to be safe bets.

Apple Is Moving Majority Of iPhone Production To India?

Apple analyst Ming-Chi Kuo has revealed some of the key observations from a recent supply chain survey. In a series of tweets, Kuo has hinted at Apple's "supply chain management strategy" in response to the current "de-globalization trend".

Kou's tweets imply Apple's plans involve shifting a major portion of iPhone production to India. The company has already tested India and has discovered the country can be a reliable partner. Apple's manufacturing partners are already collaborating with large Indian companies to resurrect some plants which had stopped production.

Apple heavily relies on multiple ODM (Original Design Manufacturers) to make iPhones, iMac, MacBook laptops, AirPods, Beats headphones, and several accessories. Kuo claims Apple will directly partner with the Tata Group, and ask the latter to work with Pegatron or Wistron. Together, these companies could build the global iPhone assembly business in India.

 

About 80% of the iPhones made in India get sold within the country itself. Foxconn is majorly responsible for these premium smartphones, but in the near future, Apple could have multiple manufacturing partners for the iPhone.

Incidentally, Apple has already decided to shift the production of Beats headphones to India and AirPods production may soon make its way to the country.

Why Is Apple Wary Of China?

China is no longer the preferred destination for global companies. The country was once the first choice for any business looking to produce its goods. However, the country is going through a series of crises that have forced global businesses to seek reliable production facilities outside the country.

Apart from COVID, China is facing a weird political upheaval. The country is also struggling with electrical power generation. If that's not bad enough, extreme weather cycles can slow down or even halt factories.

Apple has been gradually moving out of China. The company is well aware that iPhones are being sold in large numbers. Moreover, the company could be confident about the numbers shooting up as the year ends and the "Christmas fever" takes over in the western regions. Ignoring the looming economic uncertainties, the company is ensuring its supply chain is not only safeguarded but is built to grow.

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