Apple, the Cupertino tech giant, is gradually shifting its production focus away from China, and India is set to become its new go-to production hub. The Indian Trade Minister recently announced that Apple plans to produce more of its products in India, to produce around 25% of all its products in the country.
Apple Supplier Foxconn is Trying to Ramp Up Its Efforts in Increasing Its Workforce in India
According to the story by Giz China, Foxconn, the company responsible for manufacturing iPhones and other Apple products, is increasing its workforce in Chennai, India, in preparation for this shift.
This comes as part of Apple's strategy of diversifying its production points to minimize the effects of geopolitical tension between China and the US and the uncertainties around the coronavirus pandemic, as further discussed in an article by GSM Arena.
Apple Wants 25% of Its Production in 2025 to Happen in India
According to Reuters, some analysts have speculated that this target of producing 25% of its products in India might be achieved by 2025. However, at the time of writing, no specific timeline or confirmation of the report has been made by either Apple or the Indian government.
Having a fraction of Apple's production in India might incur more costs than when it was produced in China, as well as potentially affecting the quality of hardware, but the benefits of diversifying their production bases should outweigh that. Apple is already producing some of its products in India, and any expansion plans should be welcomed.
Apple is Trying to Shift Its Production Away from China and Into India
Apple is making a major shift in its production strategies, away from China and increasingly toward India. This move is expected to have a significant global economic impact.
The move represents a major economic impact for both India and China. It's estimated that Apple's production shift in India will generate approximately five to six billion dollars in direct economic activity over the next five years.
The Company's Decision Could have Far-Reaching Economic and Social Consequences
This money will be largely invested in local economies, enabling the growth of local businesses, creating jobs, and stimulating economic growth.
Apple's decision to increase its production in India and move away from China will likely have far-reaching economic and social consequences. The impact of the decision will be felt in both countries, with India set to reap the added benefits of increased investment and jobs.
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The Move Could Mean Millions of Apple Products Will be Produced in India's Factories
This reversal of production means Apple will soon be manufacturing millions of products such as iPhones, iPads, and MacBooks from factories in India. While India gains jobs and economic development, Chinese factories will be hit the hardest with the decreased production.
In the end, the movement of Apple's production to India will no doubt raise the country's cost competitiveness to a global level.
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