Apple Faces Manufacturing Challenges in India As China Delays Equipment Export

shift production of AirPods increases in India

Apple and its manufacturing partner, Foxconn, are facing challenges in increasing production in India. Reports indicate that China is blocking the transfer of specialized equipment and personnel needed for this.

Shipments of critical manufacturing equipment from Chinese ports to India have been delayed for several months. Foxconn has halted new work rotations for Chinese employees at its iPhone factories in India, opting to send Taiwanese workers instead. Apple and Foxconn have sought assistance from the Indian government to address these issues.

Current iPhone production in India remains unaffected, but prolonged delays could hinder Apple’s manufacturing expansion plans in the country. The company aims to increase its India-based production to 25-30% of global iPhone output by 2025-2026, up from the current 14-15%.

Despite these hurdles, Apple continues to view India as a crucial market and manufacturing hub. The company is offering plans to deepen local manufacturing, including the production of AirPods, iPads, and MacBooks in India. India is projected to become Apple’s third-largest market by 2026, behind only the US and China. The Indian government is encouraging Apple to consider assembling iPads in India and to increase local manufacturing.

More here.

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