Because it appears to be like to considerably cut back its reliance on China, the corporate is reportedly exploring shifting some iPad manufacturing to India. CNBC says Apple is having “ongoing discussions with officers” about producing the iPad in India, although “no concrete plans have been made.”
Apple already assembles sure fashions of the iPhone in India, together with the newest iPhone 14 and a number of older fashions that it nonetheless sells. At present, the iPad is made primarily in China, with some manufacturing additionally occurring in Vietnam, in accordance with a Nikkei Asia report earlier this yr.
India may very well be the following nation during which some iPad {hardware} is produced, in accordance with CNBC:
India is exploring choices to carry a few of Apple’s iPad manufacturing to the nation from China, in accordance with two sources near the Indian authorities. The tech large is claimed to be holding ongoing discussions with officers. No concrete plans have been made, but when profitable, it could increase Apple’s footprint within the nation.
Nevertheless, sources warning {that a} lack of extremely expert expertise and people with experience in constructing extremely complicated units just like the iPad may decelerate these plans in India. The overseas coverage backdrop additionally doesn’t assist, with tensions rising between India and China. The 2 nations have squared off in recent times over territorial disputes leading to escalated army presence on the India-China border.
Increasing further iPad manufacturing exterior of China can be a significant step in Apple’s roadmap of dramatically decreasing its reliance on the nation. A report from the Wall Road Journal on Saturday mentioned that Apple is advancing its plans to diversify its provide chain. Specifically, Apple is pushing its suppliers to do extra NPI (new product introduction) work exterior of China.
Transferring NPI work exterior of China would assist construct up superior manufacturing ecosystems in nations like India. At present, the dearth of extra superior manufacturing processes in different nations is the largest bottleneck for Apple’s work to maneuver in a foreign country.
At present, China is Apple’s greatest manufacturing hub for many of its merchandise, although it has taken some strides to alter that. Along with iPhone manufacturing in India, some fashions are additionally produced in Brazil. Apple’s companions Luxshare and Inventec are situated in Vietnam, the place AirPods and HomePod merchandise are produced.
Continued COVID-19 lockdowns in China have considerably impacted manufacturing over the past yr. In early November, Apple warned that shutdowns at main meeting amenities in Zhengzhou, China is having a major impression on the supply of iPhone 14 Professional and iPhone 14 Professional Max this vacation season.
However past these provide chain points, Apple’s broader relationship with China is beneath elevated scrutiny. Most lately, the corporate was criticized for limiting AirDrop performance within the nation after protesters used the software to share info essential of the native authorities. If Apple wasn’t as reliant on China for manufacturing, it could, maybe, be extra prepared to push again in opposition to most of these calls for.
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