"Apple Accelerates China Exit, Considering iPad Production in India"

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Apple is considering producing iPads in India instead of China, following its move to manufacture iPhones there. This shift away from China has accelerated recently due to worsening US-China relations and supply chain disruptions caused by China's COVID-19 lockdowns.

On the 5th (local time), US economic media CNBC reported, citing Indian government officials, that Apple is discussing relocating some iPad production currently based in China to India. Apple has also been producing the new iPhone 14, released last September, in India. Previously, Apple only manufactured older iPhone models in India.

This news draws attention amid ongoing protests in China against the strict zero-COVID policy. For Apple, the need to diversify its supply chain has increased. Earlier, Apple warned in early last month that iPhone production could be delayed due to China's intensified COVID-19 lockdowns, and shortly after, analysts adjusted their iPhone production estimates. The Wall Street Journal (WSJ) also recently reported that Apple is actively exploring shifting production from China to other Asian countries such as India and Vietnam.

However, insiders say no concrete plans have been finalized yet. They also pointed out that moving production to India could be delayed because manufacturing highly complex devices like iPads requires skilled talent and expertise. CNBC noted that rising tensions and military build-up along the India-China border do not favor Apple’s plans.

Regarding this, Gene Munster of Loup Ventures said, "It is expected that 35% will be produced in India within five years." He added, "Apple will expand iPhone production to countries other than India and China within the next five years," naming Vietnam, Malaysia, and the United States as likely candidates. Has Kumar of Piper Jaffray stated, "Apple has been trying to shift production from China to other countries, but India still accounts for less than 5% of total iPhone 14 production," adding, "For now, it will only help at a limited level."

Meanwhile, as of this afternoon, Apple’s stock price on the New York Stock Exchange is trading down 1.16% compared to the previous session.