Is China in the process of losing its status as “the workshop of the world”? The question could arise as more and more new technology giants are abandoning the Middle Kingdom to manufacture their devices in neighboring countries. Apple has provided the latest illustration of this phenomenon by relocating part of its production outside China against a backdrop of trade tensions with the United States and the multiplication of strict confinements in certain regions of the country due to the “zero Covid” policy. » put in place by Beijing.
According to JP Morgan analysts quoted by Reuters on Wednesday, Apple could manufacture one in four iPhones in India by 2025, thereby abandoning its traditional Chinese partners. For the brokerage, Apple is moving around 5% of iPhone 14 production from the end of 2022 to India, now the world’s second largest smartphone market after China. And this move won’t just affect the iPhone: JP Morgan analysts predict that around 25% of all Apple products, including Macs, iPads, Apple Watches and AirPods, will be made outside of China by 2025, compared to 5% currently.
The current tensions between China and Taiwan partly explain the Californian giant’s interest in relocating the production of its devices to countries bordering China. “Taiwanese suppliers such as Hon Hai and Pegatron play a key role in relocating to India. In the medium and long term, we also expect Apple to qualify local manufacturing suppliers in India. As a reminder, Apple has made India a strategic point in its supply chain since the Cupertino company began assembling iPhones there in 2017.