Apple

is taking the challenge of seriously

reducing its dependence on

"China" as the company's key manufacturing base.

After clearly announcing that the

iPhone 14

, the company's flagship smartphone

that has just been launched into the market

Some of them will be produced in India.

This marks the first time a new

iPhone

was produced outside of China in the same year it was released.

Because since

2017

when

Apple

started to allow

India to produce iPhones

, it has always been the production

of older iPhones 

.

What are the reasons Apple has to reduce its dependence on Chinese manufacturing?

The risk of clashes, especially the geopolitical wrangling between the US and China, is the biggest reason in this

regard

.

Whether it is a request to the suppliers in Taiwan

It has been willing to label its products as

“Chinese Taipei”

or even remove the app that is the voice of the Western world criticizing Beijing on various matters.

to reduce pressure from the Chinese government

Meanwhile,

Apple

has invested a large amount of money to build a manufacturing plant in the United States.

To produce some products to put the words

Made in USA

on the products to appease Washington as well

Even though in the end only a few years later

“That product”

will be primarily made in China at a much lower cost.

How serious is Apple with moving its manufacturing base to India?

Analysts from

JP Morgan

have forecast that

Apple

is highly likely to move

around

5% of its total

iPhone 14

production to India by the end of 2022, and possibly

25% by 2025.

Meanwhile,

JP Morgan

also predicts that all

Apple

products, whether it's the

iPad,

AirPods, MacBook

or

Apple Watch

, from just 5% of the original production outside of China, will be moving to China, making up a large proportion. 25% by 2025 too

What are the factors that confirm this fact :

Foxconn, Wistron, Pegatron

3, the electronics giant and the main company responsible for building the

iPhone

, have clearly expressed interest in a manufacturing subsidy program.

(Production-Linked Incentive Scheme) or PLI, which has conditions that are favorable for investment in building a large-scale high-tech manufacturing plant in India.

China VS India :

China and the smartphone market :

Marketing in China

It's always been a big chunk of Apple's revenue. With its 2021 earnings report, the Chinese market generated

$68 billion in revenue,

accounting for nearly

20%

of Apple's revenue that year.

China and iPhone manufacturing expertise :

For more than two decades,

Apple

has relied heavily on manufacturing in China.

Produced

more than

90% of

Apple products, while

iPhone

production

accounted for more than

98%.

India vs Smartphone Market :

India

is currently

the fifth-largest economy in the world and the world's second-largest smartphone market, according to a report by the world's leading market research firm Counterpoint. This year, India had more than 600 million smartphone users, of which the share of 5G smartphone usage continues to grow.

It currently accounts for up to 29% of the total number of smartphones.

with the largest share in the market is Xiaomi (Xiaomi) and Samsung (Samsung) 19%, followed by Vivo (VIVO) 17%, Realme (realme) 16%, Oppo (oppo). 11% , (Other 18%)

However, although the

iPhone shares only about

3-4%

market share in India,

but in the premium smartphone market

Priced at more than

Rs 45,000, or $552 or more,

the

iPhone 13

was the best-selling smartphone during the second quarter of this year, with a

63%

year-over-year growth. per year too

India and iPhone Manufacturing Expertise :

India

has been a base for

Apple 's

iPhone

production

since

2017

, but has historically been producing

older iPhones

that have undergone revamps in the production cycle, including the

budget iPhones. 

mainly to enter the Indian market.

However, despite India having both English-speaking engineers and cheap labor,

same as china

In addition, the Indian government is well prepared for a plan to support investment in high-tech industries.

But most analysts still believe that

This relocation process,

Apple

will continue to be a gradual process.

Because they still have to maintain good relations with the Beijing government.

There is also a challenge in that

“India will be able to replicate extremely strict production controls hand-to-hand, including sudden changes in demand.

And how fiercely, in the style of Apple Style?”

Special news team, Thairath Online reports.

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