Nearly a million iPhones made in India are shipped by Apple in the second quarter of this year

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Apple is increasing the diversity of its supply chain at a rapid pace. According to data, Apple shipped about 1 million iPhones produced in India in the second quarter, according to data. Apple’s supply chain may be forced to relocate if India succeeds in slowing China’s investment.

Apple’s iPhone shipments in India hit 1.2 million devices in the second quarter, led by the iPhone 12 and iPhone 13, and up 94% year-on-year, according to CMR. The quarter’s smartphone market share was predicted to be 4 percent. In addition, CMR said that iPad shipments at the same time climbed by 34% year on year to 200,000 devices, representing nearly 20% of the Indian tablet market.

Inflation has dampened consumer demand and increased India’s regulatory pressure on Chinese mobile makers, resulting in a 5 percent quarterly dip and a 12 percent annual growth in India’s smartphone shipments, much behind CMR’s forecasts of iPhone shipment growth over the same period.

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There are reports that Apple has asked some of its contract manufacturers to increase manufacturing outside China because of the Chinese lockdown measures. In April, Apple announced that the iPhone 13 was being manufactured in India, and The Economic Times reported that Pegatron’s plant would begin production in April. According to Counterpoint Research’s projections, the percentage of iPhones built in India will rise from 3.1% in 2021 to 6–7% in 2022.

In April 2020, following a brutal Indian-Chinese conflict that claimed the lives of several Indian soldiers, India revised its FDI policy and now only permits FDI from countries sharing land borders with India with prior government clearance. According to the Economic Times, the Indian Cellular and Electronics Association is urging the Indian government to enable smaller Chinese suppliers to participate in India in order to assist create a local manufacturing supply chain.

The Wall Street Journal said that despite Apple’s request for suppliers to expand in India, it would be tough for Chinese assemblers to invest there.

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