According to a recent projection, India would create 45–50% of Apple’s iPhones by 2027, on par with China, which made 80–85% of iPhones in 2022.
Luke Lin, a research analyst for DigiTimes, predicts that the greatest winners from the shift in the smartphone supply chain away from China would be India and Vietnam.
By the end of 2022, according to Lin, India would produce between 10% and 15% of all iPhones, while the country’s actual output to far is less than 5%.
“However, the speed of supply chain migration to India will be accelerated in the future because of the need for diversifying risks in light of uncertainties of China’s pandemic control,” said Lin.
Apple has increased production capacity in India and Vietnam despite the supply chain being threatened by pandemic concerns in China and geopolitical dangers.
Apple has accelerated the move of its iPhone and iPad manufacturing to India and Vietnam, respectively.
“Some Apple Watch probably will also be assembled outside China as well,” Lin mentioned.
As Indian policy encourages local manufacturing, Apple wanted to gradually increase manufacturing in India, the report said.
“They believe it will help local consumers to identify with its brand and help to expand its market share there,” Lin said.
Additionally, the study noted that starting in 2019, most of Samsung’s cell phone production capacity has been moved from China to Vietnam.
Samsung also maintains assembly facilities in South Korea and Indonesia.
Lin emphasised that Samsung is growing production there as well in order to gain market share there.