India and Vietnam are emerging as Apple Inc.’s next manufacturing hubs as assembly partners seek to add resilience to supply chains are heavily focused on China and shaken by geopolitical and health challenges.
Key electronics manufacturers are moving faster to diversify their capabilities globally, taking advantage of local incentives, according to Counterpoint Research analysts Ivan Lam and Shenghao Bai. . A multi-year effort, which began before Covid-19 and the stifling economic shutdowns that have brought China to a boil, may meet its top partner Hon Hai They say Precision Industries has moved up to 30% of its capacity to those Asian countries and Brazil.
They warn that a direct replacement for China is not immediately available, however companies like Hon Hai, also known as Foxconn, and fellow Taiwanese assembler Pegatron Corp. products outside China.
“Leaded by Foxconn and Pegatron, the companies have invested in relatively advanced factories, production lines, manufacturing processes and personnel training in India,” they wrote. Its large population and high birth rate make Vietnam an attractive market for end products and manufacturing facilities, while its workforce has lower labor costs than in China. According to the report, Vietnam has attracted 21 Apple suppliers operating in the country, although Vietnam lacks the ability to produce the most important iPhone phone.
According to Counterpoint research, smartphones manufactured in India grew 16% in the second quarter of this year, reaching more than 44 million units.
For its part, China has seen its workforce shrink since 2020, according to data from the World Bank. A team of educated and trained skilled workers is the backbone of China’s rise as the world’s factory.
Counterpoint says Apple has done its part to reduce reliance on individual factories or skilled labor by making its iPhone product design more modular and transferable between bases. The company has focused on easy maintenance and deployment of new product assembly.
According to analysts, production difficulties have been significantly reduced with the iPhone 14 and iPhone 14 Plus models. They wrote: “Now, factories in India can produce iPhone 14 almost simultaneously with factories in China. Apple started making iPhones in India this year much faster than previous generations.
Key electronics manufacturers are moving faster to diversify their capabilities globally, taking advantage of local incentives, according to Counterpoint Research analysts Ivan Lam and Shenghao Bai. . A multi-year effort, which began before Covid-19 and the stifling economic shutdowns that have brought China to a boil, may meet its top partner Hon Hai They say Precision Industries has moved up to 30% of its capacity to those Asian countries and Brazil.
They warn that a direct replacement for China is not immediately available, however companies like Hon Hai, also known as Foxconn, and fellow Taiwanese assembler Pegatron Corp. products outside China.
“Leaded by Foxconn and Pegatron, the companies have invested in relatively advanced factories, production lines, manufacturing processes and personnel training in India,” they wrote. Its large population and high birth rate make Vietnam an attractive market for end products and manufacturing facilities, while its workforce has lower labor costs than in China. According to the report, Vietnam has attracted 21 Apple suppliers operating in the country, although Vietnam lacks the ability to produce the most important iPhone phone.
According to Counterpoint research, smartphones manufactured in India grew 16% in the second quarter of this year, reaching more than 44 million units.
For its part, China has seen its workforce shrink since 2020, according to data from the World Bank. A team of educated and trained skilled workers is the backbone of China’s rise as the world’s factory.
Counterpoint says Apple has done its part to reduce reliance on individual factories or skilled labor by making its iPhone product design more modular and transferable between bases. The company has focused on easy maintenance and deployment of new product assembly.
According to analysts, production difficulties have been significantly reduced with the iPhone 14 and iPhone 14 Plus models. They wrote: “Now, factories in India can produce iPhone 14 almost simultaneously with factories in China. Apple started making iPhones in India this year much faster than previous generations.
