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iPhone production in India: `Tata Group may cooperate with Pegatron or Wistron to boost iPhone assembly`
According to a Nikkei Asia report, Apple is already asking its suppliers to move some AirPods and Beats headphone production to India.
Highlights
- Apple is planning to move its assembly businesses outside China amid the rising geo-political tensions
- Apple's plan may see Tata Group partner with Pegatron or Wistron thus boosting iPhone assembly capacity in India.
- More than 80% of the iPhones are made in India to meet domestic demand
In a move that may further boost production of iPhones in India, the Cupertino-tech giant is planning to move its assembly businesses outside China amid the rising geo-political tensions between the US and China. According to Apple analyst Ming-Chi Kuo, Apple's plan may see Tata Group partner with Pegatron or Wistron thus boosting Apple's iPhone assembly capacity in India.
Ming-Chi Kuo said that at present, 80 per cent of iPhone are manufactured in India is to meet domestic demand.
"Apple's global supply chain management strategy continues to change in response to the de-globalization trend, mainly to reduce the assembly business in China...According to Apple's plan, the Indian company Tata Group may cooperate with Pegatron or Wistron in the future to develop the iPhone assembly business. More than 80% of the iPhones made in India (by Foxconn) are currently to meet domestic demand," he said.
The analyst further added that the potential cooperation of Tata Group and Pegatron or Wistron can accelerate the increase in the proportion of non-China iPhone production.
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Ming-Chi Kuo further said that the main non-China production site for MacBook maybe Thailand in the future. Currently, all MacBooks are assembled in China. He said that in the next three to five years, around 25-30 per cent supply of Apple products to the US market could be from assembly sites located in the non-China region. This will reduce potential impacts from political risks including the US-China tariff war.
"In the long run: (1) The non-Chinese markets will be supplied by assembly sites located in non-China, while the Chinese market will be supplied by assembly sites located in China. (2) Assemblers can conduct NPI (new product introduction) in China and non-China," said the analyst.
According to a Nikkei Asia report, Apple is already asking its suppliers to move some AirPods and Beats headphone production to India. It reported that iPhone assembler Foxconn is working to make Beats headphones in India and gradually may start producing AirPods here as well.