😱 India is NOT Apple’s True Love!

Apple is bullish on its India partnership. But how has it fared in reducing dependence on China? Read on.

Apple’s results for quarter ended March 2024 are out. And it has a surprise!

Its global revenue has dipped by 4%.

In China, its third largest market, sales have dropped by 8%. 

But in India? 

It has reported double-digit growth. 

It is also shifting its supply chain away from China and diversifying to India.

But, we’re not there yet.

Apple is still heavily reliant on China. 

So much so that 84% of its top 187 suppliers had facilities in China in 2023. 

Image source: Apple moves closer to China despite supply chain shifts - Nikkei Asia

India? Merely 7.5%.

While 95% of Apple products were manufactured in China, only 14% of iPhones are now manufactured in India. Apple plans to take this up to 25% by 2025.

It is also eyeing other South Asian countries like Indonesia and Vietnam to diversify production.

And no, it’s not just production that Apple wants to diversify.

It is also looking to hedge itself against slowing demand in China.

Yes, Chinese customers are now choosing brands like Oppo and Huawei over iPhones.  

On the other hand, with rising aspirations and disposable incomes, emerging markets like India, are showing strong appetite for Apple products.

With Apple's trust in India, will our dream of becoming the global manufacturing hub come true?