JPMorgan Chase estimates that Apple will move a quarter of its iPhone production to India by 2025


Reuters, September 21- By 2025, Apple Inc. (AAPL.O) may produce one out of every four iPhones in India, according to J.P. Morgan analysts, as the tech giant shifts some of its manufacturing away from China due to rising geopolitical tensions and stringent COVID-19 lockdowns in that nation.

The brokerage predicts that India, the second-largest smartphone market in the world after China, will receive around five percent of Apple’s iPhone 14 manufacturing starting in late 2022.

Additionally, it predicts that by 2025, from five percent today, approximately twenty-five percent of all Apple products, including Macs, iPads, Apple Watch, and AirPods, will be produced outside of China.

Since it started assembling iPhones in India in 2017 with Wistron (3231.TW) and later with Foxconn (2317.TW), in line with the Indian government’s desire for local manufacturing, Cupertino, California-based Apple has placed a significant bet on the country.

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Business supply chain relocation plans were impeded by the pandemic, but now that limitations have been relaxed, more firms, including Apple, are stepping up their efforts this year.

“Taiwanese suppliers like Hon Hai and Pegatron are crucial to the move to India. Additionally, we anticipate Apple will evaluate domestic manufacturers in India in the medium-to long-term, “according to J.P.Morgan analysts under the direction of Gokul Hariharan, whose rating for estimate accuracy is a 4 out of 5.

In line with Apple’s intentions to reduce its manufacturing gap with China, a report from earlier this month said that the Indian giant Tata Group was in discussions with Wistron to form a joint venture to produce iPhones there.

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