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Apple years away from diversifying from China despite India expansion

Apple is shifting its focus away from China in favour of expanding its presence in India, according to analysts. While Apple’s reliance on China will remain significant for years to come, there is potential for India to become Apple’s next China for production. However, it could take up to a decade before this happens, said Martin Yang, senior analyst of emerging technologies at Oppenheimer & Co. Apple’s efforts to move away from China have been spurred on by US-China trade tensions and supply chain disruptions due to Beijing’s zero-Covid policy. The company currently manufactures between 5% and 7% of its iPhones in India, and there are further plans to increase the company’s prominence there. Apple’s first physical retail store in the country opened in Mumbai this week, with a second location due to open in Delhi today. The technology giant may not be able to eradicate its reliance on China, due to cost scales, logistics and inertia, but analysts predict further growth opportunities in both manufacturing production and retail sales in India. It is the second largest smartphone market globally, accounting for almost 12% of the market, and Apple shipped 6.7 million iPhones in 2022 from India – up from 4.8 million in 2021. While Apple may never achieve the price point of the mass market in India, the country’s rising middle class and increased adoption of technology is creating a more affluent consumer base.

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