According to DigiTimes, Apple is stepping up its plans to diversify its production, so as to be less dependent on China. Apple has decided to minimize production risks by trying to move part of its production outside of China. In fact, supply chain sources say the Cupertino company is transferring part of iPhone production to India.
In reality, this is not something completely new. Apple had already started production in India thanks to its production partners Foxconn, Wistron and Pegatron. This decision was made in 2019 following the commercial and economic dispute between the United States and China. The Trump administration had even imposed taxes on imported products from China. For this reason, Apple had already started looking for an alternative, if the situation between the two countries was not resolved.
Then, after months of negotiations, the United States and China finally reached a trade agreement. This reassured Apple that it no longer had to work faster to shift production. In addition, India is still lagging behind China due to the lack of highly skilled labor. And companies capable of producing components such as speakers for smartphones or headsets are very rare.
Unfortunately, in 2020, things got worse. In January, the coronavirus pandemic broke out in China. This situation literally blocked the country, then many others, including France. This has caused significant delays in the production of certain Apple products, such as the iPhone SE 2 / iPhone 9, which has yet to be released.
For this reason, it seems that Apple has made the difficult decision to become less dependent on Chinese production. Its primary objective is to avoid production problems such as those encountered recently in the future.
The transfer of production to India remains more than uncertain today, following the establishment of containment of the country during the next three weeks. Apple will likely have to revise its plans, or wait until the Covid-19 pandemic is maintained. Then, it will be possible for Apple to continue its efforts to localize its production from China to India.