A Apple has been seeking to diversify the locations where its products are produced, in order to reduce dependence on factories located in China. As we reported yesterday, production of MacBooks is being moved to countries like Vietnam and possibly thailand. The iPhones, therefore, would not escape this movement either.
As already mentioned, Maçã is betting (and big!) on the India to meet its production demand for iPhones. Some analysts believe that the company’s plan is to reach the proportion of 25% devices made in the country (in relation to the total number of devices produced) to 2025.
While it remains to be seen whether this ambitious target will be achieved, production in India is on the rise. According to the Bloombergare being produced in the country today 7% of iPhones, which corresponds to a value of $7 billion (around R$34.5 billion). By way of comparison, in 2021, the nation produced just 1% of Apple’s smartphones.
In addition, with the upcoming iPhones, for the first time the devices will have their manufacturing started in two different countries at the same time — that is, in India and China, where most of the devices are still made. Although the production of the most advanced models is restricted to Chinese factories, considering the difficulties in transferring production, there has been a noticeable advance in this process and in a relatively short time.
It is worth remembering that this transfer process has a high potential impact in several aspects. In addition to, in the long term, messing with the number of jobs in China (decreasing) and in India (increasing), Apple is already, for example, seeking changes in Indian labor laws in order to allow the continuous operation of large factories in two turns.
her own Foxconn — Apple’s main supplier — is also incorporating these Apple needs into its business model. The owner of the chain of factories plans to invest around US$700 million building a production facility in southern India to handle demand for iPhones.
It is not possible to say whether the ambitious goals of the Cupertino giant will be achieved in the estimated periods. However, we can see how transformations are taking place – and at considerable strides. The Chinese government will certainly react by trying to stop this transfer of production, and it remains to be seen whether it will be enough to change the course of events.
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