25% of iPhone Production Expected to Move to India by 2025

According to analysts at JP Morgan, Apple is preparing to make India and Vietnam its key global manufacturing hubs as the company continues to cut its reliance on China, TechCrunch is reporting.

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In a note to clients sent out this week, the analyst claimed that the Cupertino company will move 5% of global iPhone 14 production to India by late 2022, and will expand its manufacturing capacity in the country to produce 25% of all iPhones by 2025.

Similarly, Apple plans to move 20% of all iPad and Apple Watch productions, 5% of MacBook, and 65% of AirPods to Vietnam by 2025.

South Korean tech giant Samsung has also set up one of its largest factories in India, thanks to the lucrative subsidies offered by the government to make the country a global manufacturing hub.

The presence of the foreign production giants, coupled with “ample labor resources and competitive labor costs,” make India a desirable location, the analysts said.

Google also plans to move some of Pixel smartphones’ production to India, The Information reported recently. The company, which skipped shipping flagship models in India for two generations, said Wednesday it will launch the upcoming Pixel 7 models in India.

Chinese smartphone makers, including Xiaomi, Oppo, Vivo, and OnePlus also locally assemble a number of their handsets in India.