Apple Ramping Up iPhone Production in India to Reduce Dependency on China: Report

Apple is ramping up the production of iPhone models in India as it plans to reduce its reliance on China, according to a report. The Cupertino giant is also said to start producing the iPhone 12 series locally. Alongside India, Apple is said to be increasing the production capacity of its iPhone and iPad lineups in Vietnam. The report claims that Apple will also be increasing the production of smart speakers, headphones, and computers in Southeast Asia.

Citing people familiar with the development, Nikkei Asia reports that Apple is increasing iPhone production in India with plans to start producing the latest iPhone 12 series locally as early as this quarter. The company was earlier said to start producing the iPhone 12 in the country sometime in the middle of next year. The production could take place at Wistron's Karnataka facility.

In addition to India, Apple is said to shift iPad manufacturing from China to Vietnam, with the production planned to begin from the middle of this year. The company is also reportedly mobilising its suppliers to expand production of the HomePod mini in the Vietnamese market. Apple has already increased the local production of AirPods models, according to the report.

Apple is also said to have relocated some production of the Mac mini to Malaysia. It is said to move a part of the MacBook production to Vietnam later this year.

Late last year, Apple supplier Foxconn invested $270 million (approximately Rs. 1,969 crores) in Vietnam to set up a subsidiary in the country. Dongguan, Guangdong-based Luxshare Precision Industry is also reportedly ramping up its existing capacity in Vietnam for the HomePod mini. The company is already a key supplier for AirPods and is one of the new assemblers of the iPhone.

Apple didn't comment on the reported details.

In the recent past, Apple took several steps to reduce its dependency on China and diversify its production. The company started manufacturing the iPhone 11 in India in July last year. Supplier Wistron had also reportedly started manufacturing the iPhone SE (2020) in the country.

Alongside Wistron, Foxconn and Pegatron — two key suppliers of Apple devices — have showed interest in producing the iPhone in the Indian market. All three of them had applied for a $6.64 billion (roughly Rs. 48,409 crores) scheme under the government's product-linked incentive (PLI) plan.

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