Apple will produce less in China for the benefit of these two countries

For the production of its devices, Apple relies heavily on its Chinese suppliers. However, and over time, the Cupertino company wishes to move away from its dependence on the Middle Kingdom.

According to the latest information from JP Morgan bank analysts, the Tech giant intendsfocus more on Indiaand Vietnam. In detail, 5% of global iPhone 14 production will take place in India by the end of 2022. At the same time, Apple will increase its production capacity in the country to produce 25% of all its smartphones there. by 2025.

Apple's rivals are also betting big on India

Vietnam is not left out, since it should ensure the manufacturing of 20% of iPads and Apple Watches, as well as 5% of MacBooks, and 65% of AirPods by 2025.

In their report, the experts note:

The iPhone supply chain in India has historically only supplied older models. Interestingly, Apple has asked suppliers to manufacture the iPhone 14/14 Plus models in India, within two to three months of the start of production in mainland China. This much shorter interval implies the growing importance of production in India and likely higher iPhone allocations to manufacturing in India in the future.

Note that Apple is not the only big company betting on India. Our colleagues fromTechcrunchrecall that Google plans to transfer part of Pixel production there, while Samsung and Xiaomi are also betting a lot on China's neighbor.

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By : Keleops AG