A Chinese newspaper has questioned Apple’s decision to move its production outside of China.
China and the US have not had a good relationship, the consequences of which are filtering through to business. Such an effect has been observed in Apple’s iPhone production, the majority of which takes place in China. Now that Apple has decided to move its iPhone production out of China and bring it to countries like India, a Chinese daily has commented on the challenges the Cupertino company will face. The paper even questions India’s policies and legal system that pose challenges to manufacturing.
A People’s Daily story tells of Apple’s decision to move iPhone production from China to Brazil, India and other countries. The story is about the US’s decoupling policy from China and how it could impact brands like Apple, whose biggest returns are currently coming from China. The report also talks about India and the challenges Apple could face if it moves its 25 percent production capacity to India by 2025, as previous reports show.
India may present several challenges, says Chinese newspaper
The publication says Apple may not have an easy time in India. “Apple’s move to India may be a success, but the process may not go smoothly as it depends on how India can adjust its labor policy and improve its labor capacity in a short time and keep up with basic services.” , infrastructure and services. If Apple’s presence is to survive and grow, it must be based on India’s improved policies and legal system, which will be beneficial for more foreign companies to enter India in the future,” the report said.
Currently, Apple is only producing select iPhone models in India in limited quantities. Apple’s contract manufacturer Foxconn and Wistron are powering the iPhone production scene in India. Foxconn now assembles the iPhone 14, iPhone 13 and iPhone 12 in India, while Wistron handles the iPhone SE models. However, the local assembly does not affect Indian prices as most iPhone components are manufactured outside of India, including mainly China.
However, Apple has been experiencing problems in China with the frequent COVID-induced lockdowns. Bringing some of the production to India should be easier for Apple’s supply chain, where such challenges are rare. That’s why Apple started making iPhone 14 in India just a month after its global launch. That said, the iPhone 14 is seeing less demand this year, with Apple having to focus production on the iPhone 14 Pro and iPhone 14 Pro Max models.