In 2027, one out of two iPhones will be ‘Made in India’: the end of Chinese leadership?
Apple turns its back on China: over the next five years, more than 50% of the production of iPhones and other tech products will be moved to India and Vietnam.
India will assemble up to 50 percent of all Apple iPhones by 2027, according to a new report taken up by the South China Morning Post. In short, if today all Apple-branded phones are assembled in China, in less than five years from today one iPhone out of two will be assembled in India.
This progressive migration of Apple’s supply chain will have important effects on the Chinese economy, which could lose its leadership in the consumer electronics sector over the next ten years. It is also expected that other large American and European companies will decide to progressively distance themselves from China , now considered an increasingly dangerous unknown factor by more and more analysts.
The watchword is to diversify the supply chain in order to avoid a repeat of a catastrophe like the one triggered by Covid-19 and by the frequent and continuous lockdown policies decided by Beijing.
“The transition process of part of Apple ‘s supply chain in India will be accelerated in the near future, due to the need to diversify risks in light of the uncertainties in pandemic controls in China,” said Luke Lin, analyst at the center of Apple. research associated with DigiTimes magazine.
A year ago India overtook the UK to become the fifth largest economy in the world. It will supply 25% of Apple’s entire iPhone production by the end of 2023. In 2025 it will increase to 40% and so on, until the share of products assembled in China becomes marginal.
Analysts predict that India and Vietnam will be “the biggest beneficiaries” of Apple’s efforts to move more than 50% of its manufacturing supply chain out of China.
- India’s share of global iPhone production forecast to match China’s by 2027 as Apple steps up supply chain diversification (scmp.com)