April 1, 2023

A man holds an iPhone 14 as new Apple models go on sale at an Apple Store in Beijing, China, September 16, 2022.REUTERS/Thomas Peter

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Sept 21 (Reuters) – Apple Inc (AAPL.O ) could make a quarter of its iPhones in India by 2025, analysts at JPMorgan said on Wednesday, amid heightened geopolitical tensions and Reuters. Strict COVID-19 nationwide lockdown.

The brokerage expects Apple to shift about 5 percent of iPhone 14 production to India, the world’s second-largest smartphone market after China, starting in late 2022.

It also estimates that by 2025, about 25% of all Apple products, including Macs, iPads, Apple Watches and AirPods, will be manufactured outside China, up from 5% currently.

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Cupertino, Calif.-based Apple has been making big bets in India since it began assembling iPhones in India in 2017 through Wistron (3231.TW) and later with Foxconn (2317.TW). The government pushes for local manufacturing to be consistent.

The pandemic has hampered companies’ supply chain relocation plans, but more companies, including Apple, are re-accelerating those efforts this year as restrictions ease.

“Taiwanese suppliers such as Hon Hai and Pegatron have played a key role in the relocation to India,” said JPMorgan analyst Gokul Hariharan. “In the medium to long term, we also expect Apple to qualify as a local manufacturing supplier in India.” 4 out of 5 for estimating accuracy.

A Bloomberg report earlier this month said Indian conglomerate Tata Group was in talks with Wistron to set up a joint venture to assemble iPhones in the country, as Apple plans to reduce production lag with China. [nL1N30G096] read more

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Reporting by Aniruddha Ghosh in Bengaluru; Editing by Anil de Silva

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