Apple to boost operations in India amid strict COVID-19 norms in China

Apple to boost operations in India amid strict COVID-19 norms in China
Chinese government’s anti-COVID measures have reportedly had a severe effect on Apple’s operations in China. Therefore, the tech giant has told some of its contract producers that it intends to broaden its production horizons to make its iPhone, MacBook, and iPad outside of the country.

According to reliable sources, some countries that are being considered as possible alternative locations for Apples operations are India and Vietnam. This move is likely to impact the thinking of other Western companies as well that were already considering reducing their dependence on China especially since Beijing was known to have indirectly supported Russia’s invasion of Ukraine.

In April this year, Apple Chief Executive Tim Cook stated that the companys products are made across the globe and that they were working on optimizing their supply chain operations.

Apple warned that the companys sales would be negatively affected by a decline of USD 8 billion in this quarter, given the repeated outbreak of COVID-19. Due to China’s strict anti-COVID rules, it has been difficult for executives and engineers to visit the companys facilities in the country.

The power outages that occurred last year also affected the countrys reputation for reliability. Except for India, China was the only country in Asia that had a sufficient pool of skilled workers to meet the needs of its growing population.

Sources close to the matter asserted that Apple sees India as the closest proxy to China. India is expected to make up to 7% of the worlds iPhones this year up from its statistics of 3.1% of the devices last year.

While India is considered a potential alternative location for Apples operations, Samsung, another major player in the smartphone industry, already has a manufacturing hub in Vietnam. Meanwhile, Foxconn Technology Group as well as Wistron Corporation have already jump-started setting up production facilities in anticipation to produce iPhones for India’s domestic market.

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Anjali Mishra

Anjali Mishra

A postgraduate in Criminal Law, Anjali Mishra uses her analytical skills to understand and write about all things market. Anjali holds a keen interest in writing insightful articles on healthcare, business, finance, and emerging technologies for AlpenHornNews and numerous other portals. Coming from outside the economical milieu, Anjali aims to write in a way that helps readers with non-technical knowledge understand technical concepts with ease.