Apple diversifies production bases
iPhone sales in China down 24% YoY
As Apple’s iPhone production in China decreases, its production in India significantly increases. This shift is attributed to the struggles faced by China’s lockdown policies during the COVID-19 pandemic and a significant drop in iPhone sales due to competition from local companies like Huawei.
Bloomberg reported on the 10th (local time) that “14% of all iPhones produced by Apple in the fiscal year 2023 (October 2022-September 2023) were manufactured in India,” indicating that Apple’s diversification of iPhone production bases and the move away from China are gaining momentum.
Production in India doubled compared to the previous year, amounting to around $14 billion. Apple has faced difficulties in production due to China’s lockdown policies amidst the US-China trade dispute and the COVID-19 pandemic. Consequently, iPhone sales in China plummeted, prompting Apple to reduce production in China gradually.
India, emerging as an alternative production base, has been producing older iPhone models and expanding sales primarily in emerging markets. However, as the strategy of moving away from China materialized, production of the iPhone 14, which was launched in September 2022, began in India.
Bloomberg added, citing market research firm Counterpoint, that “about 6.5 million iPhones were shipped from India in 2022.” Compared to the 50 million iPhones produced in China during the same period, India’s production still accounts for only 13%. However, the trend shows a decrease in Chinese-made iPhones and an increase in those made in India.
Apple has been investing in India as a sales market, opening its first offline stores in Mumbai and New Delhi, India’s largest cities; last April, CEO Tim Cook even made a personal visit.
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