It is reported that due to the geopolitical and epidemic situation, Apple’s manufacturing suppliers are improving their supply chain flexibility, and India and Vietnam are expected to become Apple’s next manufacturing centers.
Ivan Lam and Shenghao Bai, analysts of Counterpoint Research, said that major electronic product manufacturers are accelerating their pace and using local incentive policies to achieve capacity diversification globally. Among them, Apple’s main partner Hon Hai transferred up to 30% of its capacity to Asian countries/regions other than Chinese Mainland and Brazil.

Analysts said that the possibility of mobile phone assemblers directly replacing Chinese Mainland would not appear immediately, but companies such as Hon Hai (Foxconn) and Asus in Taiwan, China are laying the foundation to handle more final assembly and packaging of products outside Chinese Mainland.
Analysts said: “Under the leadership of Foxconn and Hoasus, enterprises have invested in factories, production lines, relatively advanced manufacturing processes and personnel training in India.” India’s huge population and high birth rate make it an attractive market and manufacturing base for end products, while Vietnam’s labor cost is lower than China’s. It is reported that Vietnam has attracted 21 Apple suppliers to conduct business in the country.
Analysts said that the manufacturing difficulty of iPhone 14 and iPhone 14 Plus models was significantly reduced. “Now Indian factories can almost produce iPhone 14 at the same time as Chinese factories.” They wrote. Apple started producing iPhones in India this year much faster than previous generations.
Earlier, it was reported that Apple had accelerated its plan to move some production out of Chinese Mainland in recent weeks, requiring suppliers to plan more actively to move assembly to India, Vietnam and other places, and seeking to reduce dependence on Taiwan assembly plants such as Hon Hai Group. Dan Panzica, former director of Hon Hai, once said that India and Vietnam also have their own problems. Vietnam’s manufacturing industry is growing rapidly, but lacks labor; In India, there is a lack of coordination among various government levels, and the regulations and operation methods of each state are different.