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.
Read related news :
Think Different, adding Apple with a difference in Tim Cook style.
Why Sam Bankman Fried Survived the Crypto Winter
Kwon Do-hyung is arrogant, deceitful, fails.
The story of "sword" and "killer" and execution from ancient times.
Politics 3 years, past, present, future
Flaws 3 P. Conflict and peaceful means