If reports are to be believed, Apple is preparing to increase production in Southeast Asia and India. According to research firm Counterpoint, India made 3.1 per cent of the world’s iPhones last year and the proportion is expected to increase to 6 per cent to 7 per cent this year.
Zero Covid policy is now becoming a headache for China. This policy of Jinping is already being opposed. Now foreign companies are also opposing this policy. Due to the supply chain being affected, smartphone giant Apple is now looking to increase production outside China. If reports are to be believed, Apple is preparing to increase production in Southeast Asia and India.
The Wall Street Journal, citing people familiar with the matter, said that Apple products are already being produced in India and Vietnam. In such a situation, these countries are being seen as an alternative to China. If a giant like Apple does this, then other Western companies can also take steps in this direction.
Companies want to reduce dependence on China
If reports are to be believed, most Western companies are considering reducing their dependence on China. In fact, China is indirectly supporting Russia in the Russia-Ukraine conflict. In such a situation, Western companies want to reduce dependence on China for manufacturing and key materials. According to statistics, more than 90 percent of Apple’s products, including the iPhone, iPad and MacBook, are manufactured in China by external contractors.
Losses estimated at $8 billion
Apple CEO Tim Cook said that under China’s strict Covid policy, there is a lockdown in Shanghai and other cities. So our supply is getting affected. In April he estimated losses of US$8 billion. At the same time, due to Corona, even the engineers and officers of the company are not able to come to China for the last two years.
Production may increase by six to seven percent in India
India is the country after China among Asian countries, which has a large number of qualified workers. In such a situation, Apple is looking at India as its option. According to reports, Apple is in talks with some existing suppliers to increase production in India. According to research firm Counterpoint, India made 3.1 per cent of the world’s iPhones last year and the proportion is expected to increase to 6 per cent to 7 per cent this year.