For several years now, Apple has intended to free its production chain from dependence on China. The covid crisis has notably demonstrated that a shutdown of factories in the Middle Kingdom could undermine Apple's supply. Therefore, the Tech giant has invested in other countries to avoid this danger.
Apple deploys its strategy
This is particularly the case for India, and this strategy is starting to bear fruit if we are to believe the report by analyst Ming-Chi Kuo which reveals that this state accounts for 14% of iPhone units shipped in 2023. Foxconn, the powerful subcontractor of the Cupertino company, is involved in 80% of this total.
Far from stopping there, the Taiwanese company plans to reduce its production in China by 2024, particularly in Zhengzhou (35 to 45%) and Taiyuan (from 75 to 85%). At the same time, countries like India and Vietnam will benefit from these developments.
According to the latest known estimates, Apple has already transferred its production for a total value of 7 billion dollars regarding the iPhone. Over the next five years, this total will rise to $40 billion, showing that the movement is only just beginning.
Note that Apple is also dependent on China in terms of smartphone sales. Moreover, rumors according to which civil servants in the Middle Kingdom would no longer be able to use iPhones had led toa drop in the company's stock on the stock market.
As a reminder, we returned last December to the announcementof an investment of 500 million dollarsin India by Foxconn. For Apple, there is no longer any question of making its potential customers wait too long. We know that delivery times that are too long can push consumers to turn to the competition.
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By : Keleops AG
