India is one of the world’s largest economies, with a population of over 1.4 billion people. This makes it a very attractive market for companies looking to sale and manufacture products. Apple, aware of this situation, shifted some of its production from China to India a while ago. It seems that this move has proven beneficial for both parties as Apple propels smartphones into the top five of India’s exports. Here are the details…

Apple’s iPhone Propels Smartphones into Top Five of India Smartphone Exports

India’s smartphone exports have almost doubled in the last year, from $5.4 billion to $10.9 billion. This is a significant increase, and it is largely due to Apple. Apple accounted for about half of India’s smartphone exports in the 2022-2023 financial year, even though this only constitutes 7% of its entire iPhone production.

In 2022, Apple started assembling iPhones in India at its Foxconn factory. This is a major step for Apple, and it is a sign of the company’s confidence in the Indian market. Apple plans to increase its manufacturing presence in India in the future, and this is likely to lead to even more growth in India’s smartphone exports.

India is now the world’s second-largest smartphone market, and it is expected to become the world’s largest smartphone market by 2025. However, the growth of India’s smartphone exports also presents some challenges for the Indian government. The government needs to ensure that the country has the necessary infrastructure to support the growth of the smartphone industry.

This includes things like reliable electricity, good roads, and a skilled workforce. The government also needs to make sure that the Indian market is open to competition, and that there are no barriers to entry for new players. However, the parties are the only way to work together to solve all these problems and meet the needs.

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Over the last couple of years, it has been clear that Apple is looking to diversify its production of its iPhone outside of China. India is one such nation with the 7 billion US Dollars worth of iPhones being made in the country in the last fiscal year. This meant that it has basically tripled its production in the region.

According to a Bloomberg report, the Cupertino based giant has invested its iPhone production capacity in India, with 7 percent of all iPhones being made in the region. This was possible thanks to its expansions from its major supply chain partners like Foxconn and Pegatron, as per sources close to the matter. This also marks a notable rise in iPhone production from just 1 percent back in 2021.

As of right now, the brand is looking to reduce its dependence on China for the production of a number of its products like iPhone, Macs, iPads, and more. This move to diversify its supply chain also arrives as tensions between the US and China continue to escalate. Despite this, Apple’s suppliers in China have ramped up manufacturing by expanding their production lines, as per sources close to the matter.

If this news is true, then nearly 1 out of every 10 iPhones around the globe was made in India. Furthermore, the company’s largest supplier, Foxconn, is even looking to invest another 700 million US Dollars on a plant in a southern state in the Southeast Asian country. This plant will likely be responsible for making its iPhone components or whole iPhones as well.

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Apple’s recent plans to expand iPhone production in India have had a major impact on component suppliers in China. According to the South China Morning Post, the shares of Chinese companies involved in all of Apple’s devices have already fallen in response to the move. Goertek, a component supplier, lose AirPods orders as expansion knocks profit forecasts 60%. Camera parts maker Ofilm also stopped all orders because Apple was placed on the U.S. sanctions list for human rights violations, resulting in a sharp drop in sales and profits.

The move by Apple is part of a larger strategy to diversify its supply chain and reduce its reliance on China. The company has been facing increasing pressure from the U.S. government to move production out of China, as well as rising labor costs and U.S.-China trade tensions. India, on the other hand, offers an abundance of skilled labor and a pro-business government eager to attract foreign investment. Also, India has a huge smartphone market, and by producing devices locally, Apple can avoid import duties and increase its market share in India nation.

It should be noted, however, that while iPhone shipments in India doubled between April 2022 and December 2022, they still account for less than 5% of the total. Nonetheless, a Taiwanese analyst predicts that India’s production could increase to 50% of all iPhones by 2027. This The forecast is in line with earlier forecasts by JPMorgan analysts who estimated that 25 percent of all iPhones will be manufactured in India by 2025.

As production of iPhones and other Apple products in India continues to grow, the impact on Chinese suppliers is likely to continue to be significant. Chinese suppliers that have so far relied largely on Apple as a major customer will have to find new customers to compensate Lost Apple orders. This could lead to the decline of the Chinese component industry and the rise of the Indian component industry.

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Apple has come up with critical news that could affect iPhone prices and stocks. Allegedly, the company accelerated its plans to shift iPhone production from China to other countries. The tech giant, has set its sights on other Asian countries and wants to take production to India and Vietnam.

Apple tells suppliers to plan for shift of iPhone production out of China

China is Apple’s choice for production for many of its significant products, but over the years, it has reconsidered relying on the country so much. While it has long planned to start spreading its production into other territories, it seems that Apple is becoming more proactive about its intentions.

According to The Wall Street Journal (WSJ) article, Apple wrote that its eyes are set on other Asian countries. Allegedly, the company wants to take production to India and Vietnam. The report stated that Apple executives have long known the risks of dumping production to China but have not made anything against it. It was noted that China provided Apple with an educated and hardworking workforce, political stability and a vast market for its products.

The plans mention reduced dependency on Foxconn Technology Group companies. Buffeted by lockdowns led by zero-COVID government policies, as well as riots that have occurred at Foxconn’s troubled Zhengzhou factory, the biggest maker of Pro-model iPhone, Apple has more of a need to migrate away. Analyst Daniel Ives said: “What happened at the Foxconn factory in China was the last straw for Apple.”

Analyst Ming-Chi Kuo said that Apple plans to manufacture 40-45% of iPhones in India, up from a current level in the single digits. Meanwhile, Vietnam is expected to take on more production of other product ranges, such as AirPods, Apple Watch, and MacBook models.

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Tata Group is apparently planning on buying a manufacturing facility from one of Apple’s suppliers. The company aims to acquire the iPhone manufacturing plant of Wistron that is set up in India. So here are all the details.

The Indian conglomerate is reportedly in talks with the Taiwanese supplier to buy out the iPhone production facility that is situated in the region, as per sources close to the matter (Via Economic Times). The company was previously rumored to be eyeing the iPhone production site earlier this year, and now it seems like the plan has seemingly moved forward. We had also reported that Tata Group may soon build iPhones for Apple in India. Tata was in discussions with Wistron to enter into a partnership to setup a joint electronics manufacturing venture in India.

This collaboration would primarily revolve around the production of iPhones in the country. The company is supposedly planning on working with Wistron to get access to its expertise in product development, supply chain, and assembly. For those unaware, Apple has been working on diversifying its supply chain outside of China and has been expanding it to regions like India and Vietnam. So this joint venture would’ve had Wistron’s iPhone assembling output to rise by over five times in India.

Interestingly enough, Tata has already entered the smartphone supply chain for Apple iPhones. It is currently building iPhone chassis components in the Southern part of India. Apart from Wistron, another Apple supplier called Pegatron and Foxconn assemble iPhone models in India, with the former recently deciding on building the company’s latest iPhone 14 series in the region.

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Apple had just recently announced the iPhone 14 series. And now, a new report has revealed some interesting details regarding its production, which is apparently 20 percent more expensive than its predecessor.

The news arrives from a Nikkei Asia report that claims that the new iPhone 14 models cost 20 percent higher to make than the last gen iPhone 13 lineup. Furthermore, this report also offered detailed breakdown regarding the production costs of individual models as well. For example, the top end iPhone 14 Pro Max costs around 501 US Dollars in terms of production. This is higher than the 461 US Dollar production price tag of the iPhone 13 Pro Max.

Reportedly, the primary reason for this price hike is the new A16 Bionic chipset, which alone costs 110 US Dollars. Nikkei stated that the production prices for the Pro Max iPhone models typically sat between 400 to 450 US Dollars since the introduction of this model back in 2018. In other words, the Cupertino based giant is seeing higher production expense despite not raising the prices over the previous generation. This basically means that it is willing to take a hit in profits.

As per the report, the new A16 Bionic chipset costs 2.4 times more than the previous year’s A15 chip. Furthermore, the inclusion of the new Sony CMOS sensors also further hike the prices. These new sensors are around 30 percent larger in size than last year’s sensors, and are also around 50 percent more expensive as well, with a production bill of 15 US Dollars. Interestingly, a third of the Apple iPhone 14 lineup is sourced from US based companies, with the components also seeing an overall hike of around 10 percent as well.

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Apple had recently announced its highly anticipated iPhone 14 series. However, it seems that the latest generation of the company’s smartphones are not meeting demand expectations in the global market.

The news arrives from a Bloomberg report, which states that the Cupertino based giant’s 2022 iPhone lineup is failing to meet projected demands. As per the report, the brand has told its suppliers to lower production of the iPhone 14 series by up to 6 million units due to lack of demand. This is by no means a small figure, and implies that the latest iPhones are not performing as well as they were expected to in the market right now.

This is also quite interesting considering that Apple was seeing lengthy wait times for its higher end iPhone 14 Pro series models. At one point, pre order periods and the lead time to delivery for the iPhone 14 Pro Max was 36.5 days. This marked the highest lead time for an Apple product in six years. Furthermore, the Pro models were significantly more popular in terms of pre orders when compared to the base iPhone 14 and the larger iPhone 14 Plus variant.

According to sources close to the matter, the brand’s new target is to make 90 million iPhones in the second half of this year. This figure is around the same as the the number of phones produced last year as well. Apple is still in touch with its suppliers for the move to cut production, although, this might lead to some issues in the company’s supply chain. But, this might be based on the revenue brought in by the new iPhones.

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Over the last couple of years, Apple has been slowly but steadily diversifying its supply chain and assembly for its products. Now, a new report has suggested that the company might soon shift a significant portion of its iPhone production to India.

The news arrives from a JP Morgan analyst, Gokul Hariharan, (Via Reuters) who stated that Taiwanese suppliers such as Foxconn and Pegatron will be central figures in the Cupertino based giant’s plans of moving its manufacturing process away from China. For those unaware, we have already covered multiple reports of Apple working on shifting away its production and assembly process for its products like iPhone, iPad, Macs, and others away from China and into new regions like Vietnam and iPhone.

As of right now, it already has begun production from these different nations, but it seems that India’s role in the manufacturing process might be expanded significantly in the next couple of years. The first iPhone was first assembled in India back in 2017, but due to the COVID-19, local lockdowns meant that the region only accounted for around 3 percent of all iPhone production. But now, it seems like this figure will be bumped a lot, with JP Morgan analysts claiming that soon 25 percent of all iPhones will be made in India by 2025.

This basically means that one in four iPhones will be made in India. Furthermore, the brand is also apparently planning on moving about 5 percent of iPhone 14 production to India by the end of this year. On the other hand, China is expected to lose around 25 percent of total production of all Apple products, including Macs, iPad, Apple Watch, and AirPods as well.

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Apple has just recently announced its 2022 lineup of iPhones, which is the iPhone 14 series. It is the latest generation of flagship smartphones from the brand, and it appears that its supply partner in India might include the Tata Group.

According to a Bloomberg report, the Cupertino based giant’s Taiwabnese supplier Wistron Corp and Tata Group are in talks to create a joint venture that will them produce iPhones. In other words, Tata could be the first Indian company to make iPhones within the region. For those unaware, the Indian conglomerate is known for a number of business, which extends from salt to steel to even software as well. Now, it appears its diversifying its operations to another industry.

The sources close to the matter in the report further added that “The aim is to make Tata a force in technology manufacturing, and the Indian salt to software conglomerate wants to tap the Taiwanese company’s expertise in product development, supply chain and assembly.” Unfortunately, the joint venture’s deal structure and other finer details like shareholdings is still known at the moment. Although, it may likely involve the Indian company buying shares in Wistron’s Indian operations.

It is also possible that Tata was brought on board to also build a new assembly facility in India. Apple has been making iPhones in the region since 2017, so it wouldn’t be surprising if it plans on expanding the scale of production as it has already been attempting to diversify its supply chain to regions outside of China.

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The launch of the Apple iPhone 14 is just around the corner. But prior to any official announcement, an analyst has revealed that the company will start production of the newest iPhone lineup for the first time ever at launch.

For those unaware, the Cupertino based giant has began production of its latest iPhones in recent years. However, the region began production of these newly launched iPhones typically around a quarter or more behind its primary production hub, which is China. But now, it appears that the brand is planning on having the Indian production to go hand in hand with the Chinese production for the first time.

The news arrives from known analyst Ming-Chi Kuo, who claimed that Apple supplier Foxconn will start the production of the 6.1 inch iPhone 14 “simultaneously with China” in the second half of this year. He further added that India’s iPhone shipments will still have a considerable gap with China in the short term, but it is still a milestone in Apple’s efforts to diversify its supply chain outside of China.

The iPhone maker has been working on expanding its production to regions outside of China, with Vietnam and India being newer and upcoming nations. Notably, the analyst stated that another one of the reasons that Apple is moving its production away from China is due to geopolitical reasons. Additionally, it has identified the Indian market as the next key growth driver and plans to expand its production in the region.

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Recently, China implemented a local lockdown in Zhengzhou city. This region is close to an Apple iPhone manufacturing site, which has raised concern for the company’s smartphones supply chain.

According to a Bloomberg report, certain areas in the Zhengzhou Airport Economy Zone have been put under a quarantine zone. In other words, people living in the area are not allowed to move outside of their homes. Furthermore, this Airport Economy Zone is also where Foxconn’s largest iPhone assembly plant is located. For those unaware, the Taiwanese company is the Cupertino based giant’s largest iPhone supplier. So, the local lockdowns may very well impact the production of iPhones.

Notably, the lockdowns arrive after employees have begun going through mandatory COVID testing. Additionally, the country has been implementing lockdowns in an attempt to curb the spread of coronavirus outbreaks. While the iPhones haven’t been directly affected so far, there is already a shortage issue with MacBooks. Apple’s other suppliers like Pegatron and Quanta had also recently halted production on the eastern side of China due to these quarantines.

Just last month, even Foxconn had been forced to stop production for several days from its Shenzhen facility after a city wide lockdown was imposed. And now, it seems that a similar incident might occur again due to rising cases of COVID. Although, it remains to be seen if production halts in this region as well.

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Apple is apparently planning on cutting down production of its iPhones and AirPods series of products. The news amid uncertainties caused by the Ukrainian crisis and inflations that may impact demand for its consumer electronic products.

As per a NikkeiAsia report, the Cupertino based giant is now planning on making around 20 percent lesser iPhone SE in the next quarter of this year. The brand might also lower production by around 2 million to 3 million units over its initial plans. This is in line with our previous report. Analyst Ming-Chi Kuo had also stated that Apple might lower iPhone SE 2022 production due to lower than expected demand for the smartphone.

For those unaware, the iPhone SE 3 is the latest smartphone from the company, and is the first within its affordable SE series to feature 5G connectivity. Furthermore, the iPhone maker isn’t stopping just there, as it might also be planning on reducing its orders for its AirPods truly wireless earbuds as well. Reportedly, orders to its supply chain might fall by more than 10 million units for this year.

The move follows as the brand is scaling back its inventory levels, again due to weaker than expected demand in the market. In the past, the company had also asked suppliers to make a few million lesser iPhone 13 series models to better adjust for the seasonal demands. So, this news isn’t really a big surprise. But unfortunately, Apple has yet to offer an official statement regarding this matter. So stick around for more updates.

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Foxconn, a known Apple supplier, has “basically” resumed normal operations in Shenzhen China. The supplier had initially halted operations due to outbreak of COVID-19 cases and later partially reignited production.

According to a Reuters report, the Cupertino based giant’s major supplier has brought production in its Shenzhen site to nearly full capacity again. Foxconn made the announcement earlier today (21st March 2022) as the city eases up restrictions  following the COVID-19 outbreaks. Furthermore, the brand added that is has restarted some production and operations at its Shenzhen campuses. To restart production, the company even had to make arrangements to have some staff live within the work bubble.

This arrangement was requested by the local government, as it was battling the outbreak of Coronavirus. Notably, the company said in a statement that it has “basically resumed normal work order and production operations” at its major campuses, including the Longhua and Guanlan districts. Foxconn further added that the process is taking place “under the premise of abiding by epidemic prevention policies and strictly implementing epidemic prevention and control.”

As per an internal document reviewed by Reuters, staff within the “high risk” area of Futian will have to continue to work from home. In other words, only a small part of Apple iPhone production is dedicated in the southern city of Shenzhen. Meanwhile, the majority of the production takes place in Zhengzhou in the central province of Henan.

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Foxconn, one of the the primary Apple supplier, has restarted the production from its manufacturing site in Shenzhen, China. The resumption of operations follows after the lockdown in the region was lifted partially.

The Taiwanese supplier told Reuters that it has currently restarted production and operations in a limited manner from its Shenzhen site. To reopen the facility, the company has met every government conditions, while also providing the staff a place to live and work, within a bubble of arrangements. In other words, the firm has set up a “closed loop management” system. A similar system was also adopted for the Winter Olympics that took place in Beijing.

In a statement, the Apple supplier stated that “Some operations have been able to restart and some production is being carried out. This process, which can only be done on campuses that include both employee housing and production facilities, adheres to strict industry guidelines and close loop management policies issued by the Shenzhen government.” At the moment, it is currently unknown which Apple products Foxconn builds from its two plants in Shenzhen.

Although, the company is known to be the largest assembler for iPhones. The firms added that factory shutdowns have caused delays in deliveries, meanwhile logistical difficulties have made it even hard to ship the products to customers across the globe. Apple had recently stated that the ongoing chip shortage 6 billion US Dollars in the last quarter of 2021 alone.

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Foxconn, one of the primary Apple suppliers, has apparently paused its operations in China. The company has halted iPhone production due to the ongoing lockdown caused by a new wave of Coronavirus outbreak.

According to a Bloomberg report, Foxconn had to halt its operations in the region because of the recent lockdowns. Although, the company has managed to relocate production to other sites that are still operating at the moment, to offset the impact of the lockdown on its production. The lockdown is expected to be in effect till March 20 and was initially started by the Chinese government after more than 3,000 cases of COVID-19 were reported on Sunday (13th March 2022).

So now, the local government put the 17.5 million residents of Shenzhen, China into lockdown. Various forms of public transport like buses and subway systems have been closed and business are only allowed to operate for providing essential services. While Foxconn’s production takes a hit, Apple would also face the impact of the lockdown, alongside other tech firms that rely on its facilities to manufacture their products.

Although the report also points at the demand for products being low since the season follows right after the peak holiday season, Apple had just launched a number of new products recently. This includes the iPhone SE (2022), fifth gen iPad Air, and Mac Studio. So, early buyers might face delays in shipments over the ongoing lockdown in China.

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With the arrival of the fourth quarter of a year, the market usually sees a rise in smartphone production to cover sales during the holiday season. But now, Apple seems to be facing various supply chain issues that has caused it to slow down the production of its iPhones.

According to a Nikkei Asia’s ‘Nightmare Before Christmas‘ report, the Cupertino based giant’s primary suppliers Foxconn, Pegatron, and others have slowed down production for the first time in over a decade. Apparently, the suppliers’ workers are getting more off time, rather than overtime, which is common during the year end period. Nikkei added that “two years of lockdowns, chip shortages, and energy cuts have finally caught up with the iPhone maker.”

For those unaware, workers usually work overtime during the holiday season as the period generally records some of the highest sales for the iPhone maker. Furthermore, Apple CEO, Tim Cook, had previously said that the supply constraints back when the new iPhone lineup launched had also costed the company a whopping 6 billion US Dollars. The primary reason for this shortage was due to the ongoing global shortage of chipsets. Nikkei’s report further added that the brand had to cut the 2021 iPhone production target by more than 10 million units after Broadcom and Texas Instruments were enable to deliver the required components.

In other words, the lack of even the smallest components can cause a major delay. The ‘Nightmare before Christmas’ report even had Nikkei dive deep by interviewing over 20 industry executives to find out what caused the company’s production to take a hit. As of right now, the production goal is still short by 20 percent of Apple’s original target as its struggles with the restrictions on power in China, lockdowns in Vietnam and Malaysia, and supply constraints due to the rising demand for chips in the market.

Notably, the iPad production fared even worse with the company producing only 50 percent of its original estimations. The shortage for parts stretched till the month of November , so customers who order now, would likely be unable to get their new tablet by the time for Christmas. Delivery times for some of its most popular electronic gadgets have also reached till January 2022 now. On the other hand, sources close to the matter have stated that the company is apparently asking its suppliers to reaccelerate iPhone production for the month of November, December, and January.

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Apple has been lowering the production of its iPads to improve its chip supply for its iPhone 13 series. The company had to shift chip supply to the latest iPhone, which has led to shorter delivery times.

According to a Nikkei Asia report, sources close to the matter have revealed that production of iPad has been lowered by a significant 50 percent than its original plans for the past two months. The lowered production of iPads allowed the Cupertino based giant to allocate more chips and other components to the iPhone 13 series that has seen robust demand all across the globe. This also showcases that the company’s new iPads and iPhones have a number of parts that are common across both platforms.

In other words, the brand has coped better amid the global semiconductor shortage as it can shift production from two different products. The reason the company is shifting is shifting production to the iPhones is likely due to its stronger than expected demand. Although, the demand for iPads has also been quite strong as well. Meanwhile, separate reports have also pointed at delivery times of iPhone 13 series becoming shorter, which also hints at its supply chain improving.

As of right now, the average lead times across the world for the iPhone 13 mini and iPhone 13 has settled around 12 and 13 days respectively. Similarly, lead times for the iPhone 13 Pro and iPhone 13 Pro Max also stabilized around 32 days, which is down from 37 days. However, the lead times are still quite a bit longer than the last generation’s iPhone 12 series.

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Apple suppliers in China are currently struggling to keep the production on schedule amid widespread power outages in the region. The suppliers are scrambling to keep production on track prior to the arriving holiday season.

According to a NikkeiAsia report, the widespread outages of power in China are the latest reasons that have caused tech giants from shifting their production away from the Asian country. As of right now, the suppliers of the Cupertino based giant, Amazon, and more are struggling to keep production on track. A source talked to Nikkei and revealed that power outages has been hitting on irregular intervals since mid September.

But now, these suppliers have been receiving notices every week notifying them regarding, which days in the following week will face a power cut. Reportedly, Apple suppliers have warned that the power cuts are threatening the supply chain, but these disruptions might last till the end of this year or possibly even longer. Furthermore, another issue is that the suppliers do not know which firms will receive power and which won’t.

The report added that another Apple supplier stated that local governments are deciding where to provide electricity based in part on the value of the products being manufactured. The news arrives as the company seeks to boost initial production of its iPhone 13 series to 90 million units through the end of this year. This marks an increase of up to 20 percent over the 75 million units of the iPhone 12 series that launched back in 2020.

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Apple will apparently witness a rise in sales for its iPhones in this year. A new report has revealed that the company will raise its iPhone production by 12.3 percent year on year in 2021.

According to a TrendForce report, the Cupertino based giant will benefit from the market’s recovery post the coronavirus pandemic. The company’s iPhone production is expected to reach 223 million units in this year, marking a 12.3 percent growth over last year. TrendForce added that there is still a room for “slight growth going forward.” Notably, the report arrives despite the ongoing global chip shortage, so it might affect the iPhone maker’s attempts to raise production.

Furthermore, the brand’s iPhone 13 is also expected to benefit from the ProMotion support, which will be a feature in the Pro models. Although, Apple is expected to focus less on the “mini” models of its iPhone lineup. This is likely due to the lower than expected market performance of the iPhone 12 mini that was launched back in 2020. The report also added that the company will also benefit from Huawei‘s decision to pull away from the high end smartphone market slightly.

Interestingly, the report believes that the 2021 series of iPhone will be called the iPhone 12s rather than the iPhone 13 and that the brand would focus more on the physical appearance and pricing of the devices. The research based firm believes that “the degree of innovation is not particularly significant in terms of appearance.” Reportedly, the new iPhones will be an “extension” to the existing iPhone 12 range as a “proactive pricing strategy.”

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Back in December 2020, Apple supplier Wistron was placed on probation by the iPhone maker, after violence had struck its facility in India. Now, Wistron has resumed the production of iPhones in the same factory.

Last year, Wistron’s facility in India was struck by violence, with certain members of staff went on a rampage inside the site. The group destroyed factory equipments and more during the violent incident. While the supplier had initially claimed that an unrelated and unidentified outside group had been responsible for the events, local media found that many of the workers of the site were involved in the violence. These workers even claimed that Wistron had not paid them fully for four months and were even forcing extra shifts on them as well.

Since then, Apple put Wistron on probation while conducting an audit and found that the supplier had failed to implement a proper working hour management process. This led to “payment delays for some workers in October and November,” as per a MacRumors report. For those unaware, the plant was set up in the region to hire over 20,000 workers and was responsible for manufacturing the iPhone SE model.

However, its operations were put on hold by Apple until Wistron addressed the treatment of the workers. Furthermore, the new report also added that the supplier even cooperated with independent auditors along with the iPhone manufacturing team to resume production after readying the necessary systems and equipment. Notably, Apple announced last month that the workers would receive a new training program as well, to ensure they are educated over their rights and how to raise any concerns.

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Apple is apparently considering to stop the production of its iPhone 12 mini. The news arrives after reports pointed at its lackluster sales, which might push the brand to halt its production in the second half of this year.

According to a BusinessInsider report, the Cupertino based giant is reportedly planning on discontinuing its most affordable handset within the iPhone 12 series in Q2 2021. The report is based on a recent forecast note by JP Morgan Chase, with its analyst William Yang stating that the adjusted forecast is for both the iPhone 12 series and the new generation iPhone series launch that is expected to arrive in the second half of this year. Previously, we had reported on Apple lowering production capacity for the iPhone 12 mini in favor of higher end models.

In other words, the company lowered iPhone 12 mini production from 11 million units to 9 million units. The analyst added that “given that demand for the iPhone 12 mini seems to be weak, the supply chain may stop production of the phone in the second quarter of 2021.” He further stated that the sales projection for the iPhone 12 Pro Max has risen by 11 million units, 2 million units for the iPhone 12 Pro, and by 8 million for the iPhone 11.

Yang also predicts that Apple aims to produce 80 million to 90 million units of the upcoming iPhone 13 series. This marks an increase from 76 million units that was scheduled for the current iPhone 12 lineup, which was launched in the second half of last year. The analyst also believes that there might not be an iPhone SE model launching this year as well. The iPhone 12 mini’s less than expected demand is likely the primary reason for the company discontinuing the device, although, this is still an unconfirmed report so take it with a pinch of salt and stay tuned for more updates.

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Apple is raising the production output of its iPhones, iPad, Macs, and other electronic products outside of China. The company will be ramping its efforts to diversify its supply chain to other nations.

According to a NikkeiAsia report, the push towards raising output for its product in countries apart from China arrives despite the hopes of easing US-China tensions after the arrival of the new US President, Joe Biden. As per sources close to the matter, the production of iPads will begin in Vietnam sometime by the middle of this year. This marks the first Apple is building a number of its devices outside of China. Similarly, the Cupertino based giant is also raising production in India as well, which is currently its second largest production base for iPhones.

At the moment, the company also plans on producing its latest 5G enabled iPhone 12 series in India within this quarter, as per sources. Furthermore, the company is also planning on increasing the production capacity for its smart speakers, earphones, and computers as well in the Southeast Asian region, which is a part of its ongoing diversification strategy. Similarly, Apple is also asking its suppliers to expand production capacity for the latest HomePod mini smart speakers.

According to a supply chain manager, “Apple and many other tech companies all want out-of-China production capacities, and that has not slowed even though the U.S. has a new president. And they are studying not only peripheral products. Apple, for example, aims to build capacity in new locations — mostly Southeast Asia nations — for multiple core products, such as iPhones, iPads, MacBooks, AirPods, and others. It was hard to imagine that two years ago, but now, nothing is impossible to shift.”

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Apple iPhone makers are said to be one among the companies that are expected to win approval to participate in a 6.6 billion US Dollars program that aims on bringing manufacturing to India.

For those unaware, the Indian government recently announced that it is expecting to approve a plan that aims at bringing 150 billion US Dollars worth of smartphone production into the country over the course of the next five years. According to a Bloomberg report, sources close to the matter said that known iPhone assemblers like Foxconn, Wistron, and Pegatron have already been cleared by the government committee for the program.

These three companies essentially produce almost every iPhone old in the world, with a majority of their assembly lines being located in China. Now, with the added incentive of the PLI (Production Linked Incentive) program, the government is trying to offer manufacturing incentives to some of the world’s largest smartphone brands to make their products in India and export to the world.

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Apart from the iPhone assemblers, Samsung is the only other applicant for the five slots allotted to foreign companies. Notably, popular Chinese brands like Oppo and Vivo are clearly missing from the list, which might be indicative of the rising trend of countries reducing dependence on China. Hari Om Rai, chairman and founder of Lava (an Indian OEM) stated that “It’s a thoughtful move by the government aimed at wooing Apple to bring significant iPhone manufacturing to India because, when the iPhone maker shifts, an entire ecosystem follows.”

At the moment, Chinese brands have been the most dominant companies in the Indian smartphone market. An analyst said that “Chinese brands have driven out domestic phone companies, leaving them with a mere 2% market share.” So the move also aims to strengthen local brands while also bringing in incentives for other international players to help boost the economy as well.

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Apple might be considering to bring the assembly of its iPhones to Vietnam. A new report has suggested that the company recently visited a factory run by Luxshare, an assembly partner, to check on the living conditions of the workers and the facility.

According to Apple Insider, Apple representatives visited Luxshare’s facility to check the viability of iPhone production in the region. Tang Due Bang, Luxshare Foreign Affairs Manager, apparently said to local media that the factory in Van Trung Industrial Park was scouted to see if it was the right scale, had the proper facilities, and if it had investment capital to start assembling iPhones.

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“The Apple side continually surveyed the workshop of Luxshare in Bac Giang on iPhone production conditions. Apple Corporation is impressed by the speed at which our fast facility is built here. At the same time, through practical research, Apple highly appreciates the potential in Bac Giang province and hard-working workers.” For those unaware, Luxshare is one of the Vietnamese firms that also assembles the Cupertino based giant’s AirPods.

Recently, the company sought financial support to expand the AirPods production, and has reportedly received it. Furthermore, the 30 hectare factory was finished in 5 months, according to Bang, after Apple requested to expand production. At the moment, Luxshare employs around 28,000 workers, which could easily rise to 50,000 to even 60,000 if it gains approval for iPhone assembly.

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Apple is following in the steps of Samsung as it is shutting down its production line that assembles iPhones in India. The move arrives after the Coronavirus pandemic pressures the local government to take drastic measures, reflecting on the smartphone industry as well.

For those unaware, the Indian Government has just implemented a three week long complete lockdown earlier this week. The step was taken to curb the further spreading of the viral outbreak which had originated from China. In just a short period of time, there have been confirmed cases of Coronavirus being found in upwards of 170 countries, with India already facing over 500 cases as well. Thus, the lockdown has been implemented prompting Indian citizens to stay confined to their homes.

Apple assembles a few of its iPhone models in India through known manufacturer’s Foxconn and Wistron. But according to a new report, Foxconn is shutting its operations until 14th April 2020. Wistron is also facing a similar dilemma and has confirmed its lockdown. As of right now, it is unknown as to why exactly the factory sites have been shut. It has either been in compliance with local authorities or after confirmed cases being found in the production lines. Both cases represent a dire state for Apple India.

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Previously, we had reported on other electronics brands like Samsung, LG, Oppo and Vivo also facing a similar predicament. It seems like the effects are covering a wider base and that more sites will close down in the coming weeks. The COVID-19 virus has been one of the biggest outbreaks in recent history, so cautionary practices are all but expected.

It remains to be seen just how severely the economy and the smartphone industry as a whole is affected. Xiaomi, the most popular brand in India, will likely also suffer from these effects after the Foxconn production sites closed down. Fortunately for Apple, only older and previous generations of iPhones were made in India, so its latest offerings shouldn’t see a severe decline in the Southeast Asian country.

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(Via)

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Historically, Apple‘s products have mainly been manufactured and assembled out of China. Only in recent years has the company started downsizing its reliance on the Southeast Asian country and started shifting production lines to other regions nearby, like Vietnam. However, a new report suggests that the company has failed its iPhone 11 production in India, showcasing its continued reliance on China.

Reportedly, Apple executives had apparently planned on moving at least one product to Vietnam as well, but that move was denied by senior management. The reason was tied with the transfer to a new location and finding a viable supply being deemed “too challenging to undertake.” Similarly, the Cupertino based giant had planned on manufacturing iPhone 11 in India as well. This would’ve been a significant change in Apple’s operations as it would be the first new generation flagship series being made outside of China.

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However, Apple backed out of the plan and halted all ongoing efforts just before setting up a manufacturing line in India. According to a source close to the company, India was unsuitable since it had no ready supply of skilled workers or infrastructure that Apple required. Thus, the iPhone 11 was made in China instead. Furthermore, although the Coronavirus epidemic, which has primarily affected China, caused disruption in production for Apple. The company still has no immediate plans to shift its operations to other regions.

Apple’s suppliers and manufacturers, like Foxconn, have faced the brunt of the issues caused by the viral outbreak. This extends outside of China as well, including regions like South Korea, where Apple gets its camera modules. Hence, the company is also stressing that China is not the only place an iPhone is made from, and its a globally sourced product.

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(Source,Via)

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There are indications that smartphone giant Apple is planning to commence manufacturing of iPhones in India. This was disclosed by the government of Karnataka, south-western region of India, who applauded the proposal of the Silicon valley tech giant to commence initial manufacturing operations in the state.

Times of India reports that the assembling plant would be located in the state’s capital, Bengaluru and that production would likely begin in June. The statement by the state’s official confirmed this but failed to state a timeline. The report went on to reveal that Apple had published job openings on its portal for several positions at its OEM in Bengaluru, in December. The job openings included an iPhone operations program manager, among others.

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When Apple starts manufacturing iPhones in India, the vastly populated Asian country would emerge as the third country globally to assemble iPhones after China and Taiwan. Analysts believe it is a right move in the right direction, considering that Apple’s sales in China, one of its largest market, had taken a swift tumble from the top position for the first in a couple of years. India also has a vast market which Apple is obviously eyeing with this latest move. India will be a fitting alternative to China and Taiwan.

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