Apple Inc Plans to Increase Production in India

According to the Wall Street Journal's report that the business was hit by Beijing's strict anti-covid measures and told some contract makers that it wanted to increase production outside China.

Apple's manufacturing bases in India and Vietnam are taken as an alternative to China, the report stated. As per analysts, more than 90% of Apple products along with iPhones, iPads, and MacBook laptops are produced in China by outside contractors. 

The move by Apple, the largest US company by market capitalization, will also affect other western companies which have been planning to reduce their reliance on China for manufacturing and key materials after Beijing indirectly boosts Russia's invasion of Ukraine and lockdowns in some cities. 

In April, Apple warned that the resurgence of COVID-19 would reduce sales by up to $8 billion this quarter. Due to China's strict anti-Covid rules, Apple has been unable to send its executives and engineers to China for the past two years. This makes it difficult to inspect the manufacturing facility directly. Last year's power outage also damaged China's reputation for reliability.

Apple considers India as another country where the company can boost its production with its population and low cost being offered in the country, according to a Wall Street Report. It is also in conversation with some existing suppliers about expanding its production in India. 

Meanwhile, Vietnam is already a hub for Apple's rival Samsung Electronics Company's smartphone manufacturing. Samsung in South Korea is limiting its exposure to the Chinese manufacturing industry.