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A Chinese newspaper has questioned Apple’s decision to move its manufacturing outside China.
China and the US haven’t been at good relations, the effects of which seeps down to business. One such effect has been observed on Apple’s iPhone manufacturing, the majority of which happens in China. With Apple now deciding to move its iPhone production out of China and bring it to countries like India, a Chinese daily newspaper has commented on the challenges the Cupertino firm will face. The newspaper even goes on to question the Indian policy as well as the legal system posing challenges for manufacturing.
A story from People’s Daily talks about Apple’s decision to move production of the iPhone from China to Brazil, India and other countries. The story talks about the US decoupling policy with China and how it could affect brands like Apple, whose major yield comes from China at the moment. The report also talks about India and the challenges Apple could face when it moves its 25 percent manufacturing capacity to India by 2025, as revealed by previous reports.
India could pose different challenges, says Chinese newspaper
The publication says that Apple may not find the going easy in India. “Apple’s move to India may be successful, but the process must not be smooth, as it depends on how India can adjust its labor policies, and whether India can improve its labor ability in a short period of time, and keep up with basic facilities, infrastructure as well as 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,” says the report.
At the moment, Apple manufactures only select iPhone models in India in limited quantities. Apple’s contract manufacturer Foxconn and Wistron look after the iPhone manufacturing scene in India. Foxconn now assembles the iPhone 14, iPhone 13 and iPhone 12 in India, while Wistron looks after the iPhone SE models. The local assembly, however, has no effect on the Indian prices since most iPhone components are manufactured outside India, which primarily includes China.
However, Apple has been facing issues in China with its frequent COVID-induced lockdowns. Bringing some of its manufacturing to India should be easier for Apple’s supply chain, where such challenges are rare. Hence, Apple started making the 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.
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