Apple is accelerating its diversification plan for the production of the iPhone outside of China … with India as the main alternative destination. Is A story that comes from afar But now steal the accelerator.
As revealed Financial Times In an extensive profile about this movement, Apple is running this movement with extreme caution so as not to antagonize Beijing, who sees with suspicion how he could lose his dominant position in the global supply chain.
Why is it important. This manufacturing migration can end up being one of the biggest changes in the world economy in decades. China has been the factory in the world for two decades and Apple’s main industrial partner, but the cook company needs to minimize its risks to an increasingly tense and complex geopolitics.
In addition to China, it no longer has such a cheap labor that it had a decade ago: its salaries have grown to the beat of its economy.
In figures:
- The Indian production of the iPhone already represents 15% of the global total.
- It is expected to reach 25% in 2027.
- Only the Chinese province of Henan exports between 50 and 60 million smartphones A year, equivalent to all the annual demand of the iPhone in its largest market, United States.
The backdrop. This Apple strategy, known as “China Plus One“, the reasons began to take shape:
- Commercial tensions with the US during Trump’s first legislature.
- Logistics problems during pandemia, which They cost Apple 8,000 million in income.
- Chinese restrictions on the use of Apple devices by its officials.
- The new tariff threats after the start of Trump’s second legislature.
Between the lines. Beijing is actively hindering this exodus hindering the movement of Chinese technicians towards India. It is also restricting the export of critical equipment, blocking the entry of Chinese manufacturers in India and imposing regulatory obstacles to Apple services as Apple Intelligence.
India, meanwhile, is taking advantage of the opportunity:
- Has allocated 6,000 million dollars To encourage smartphones production.
- Tata, the largest Indian conglomerate, is positioning itself as Apple key partner.
- Tamil Nadu and Karnataka They compete for attracting investments.
- The iPhone 16 They are already manufactured in India. For the country it is a great milestone.
In summary. Apple needs to balance this transition very delicately. China remains vital for its supply chain, but a company like Apple cannot afford to depend on a single country in an increasingly volatile geopolitical context.
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