A apple will triple production iPhones in India and production cuts in China. In fiscal 2022, which ended September 24, 2022, the company produced more than $7 billion worth of iPhones in India, according to Bloomberg. This means that almost 7% of all iPhones produced last year were made in India by contract manufacturers. Foxconn and Pegatron. India accounted for just 1% of global iPhone production in 2021.

The information comes from anonymous sources who claim that Apple partners such as Foxconn, Wistron Corp. and Pegatron have quickly added product lines in recent years. Together, the three companies have 60,000 employees in India, making models from iPhone 11 to iPhone 14. By 2025, Apple hopes to produce a quarter of all iPhone production in India.

Apple avoids ongoing trade tensions between the US and China. In 2018, the US imposed tariffs on imports from China, affecting US companies whose products were assembled in China and shipped to the US, such as Apple. President Donald Trump then allegedly told Apple CEO Tim Cook that the iPhone would not be subject to the import tax, and the device was never subject to the tax.

Covid-19 affected production in 2022

Last year, Apple’s iPhone production in China was affected by the Covid-19 lockdown. Production at China’s largest iPhone factory in Zhengzhou (owned by Foxconn) plummeted in the fourth quarter of 2022 as parts of the country, including Zhengzhou, went into lockdown due to Covid-19. Assembly line workers left the factory campus en masse, and Foxconn tried to hire new workers, leading to violent clashes.

Eventually, Apple ran out of six million iPhone 14 Pro and iPhone 14 Pro Max models. Manufacturing the iPhone in India avoids import duties that can increase the price of an iPhone by more than $100. Apple has also received special support from Indian Prime Minister Narendra Modi, whose Make in India initiative is turning the country into a coveted manufacturing hub.

A total of $5 million worth of Indian-made iPhones have been exported in the past 12 months. This is four times more than was exported last year. Apple hopes to further increase production in India in the coming years to reduce its dependence on China.

Apple plans to move MacBook production to Thailand

In addition to manufacturing iPhones in China and India, Apple is now planning to move production of its MacBooks to Thailand. According to Nikkei Asia, the company is looking for alternative locations to manufacture its electronics products outside of China, such as India, Vietnam and Mexico.

A senior executive at one of the MacBook suppliers in Thailand said: “Ideally, Apple asked us to open MacBook factories in Vietnam, following the example of other Apple suppliers, but we offered an alternative option – manufacturing the product in our factories in Thailand, where there are still large areas that can be reserved for the customer.”

The company already manufactures several Apple Watch devices in Thailand and AirPods in Vietnam, which has become a technology hub. For a company to operate in the country, it needs a large workforce ready to work on assembly lines and access to supply chains that can supply components to Apple in the required quantity and quality.

With the transfer of MacBook production to Thailand, Apple can avoid trade tensions between the US and China, as well as take advantage of tax and infrastructure incentives offered by the Thai government. Apple is looking to reduce its reliance on China, especially in the wake of the coronavirus pandemic and trade tensions between the two countries.

Mundo Conectado Deal Center: Selection of Discounts and Lowest Prices
Best deals on electronics, cell phones, TVs, soundbars, drones and more

Source: Bloomberg.

…..