Apple is considering shifting production of new iPhone 16 models from India back to China

By: Vlad Cherevko | 20.08.2024, 13:23
Apple is considering shifting production of new iPhone 16 models from India back to China

It has been reported that Apple may once again focus iPhone production in China, despite the company's recent efforts to move production to India. According to Bloomberg, the company produced $14 billion worth of iPhones in India during the last fiscal year and could allegedly start manufacturing the new iPhone 16 Pro and 16 Pro Max in India. However, other sources report that Apple may once again turn to China to produce the iPhone 16 series.

Here's What We Know

According to Chinese sources, Apple's main partner, Taiwan-based Foxconn, has started a massive hiring drive at one of its factories in China and plans to invest 1 billion yuan (about $140 million) in the city of Zhengzhou. Foxconn's return to China is no accident: the country offers more skilled workers, a better supply chain and advanced infrastructure, which should speed up and improve the quality of production.

Production of the iPhone 15 in India faced a low yield rate of around 50 per cent. In addition, Apple still has to import components from China, which increases transport costs. Power supply problems in India and Vietnam also reduce production capacity and efficiency. China, on the other hand, offers stable power supply and a full production base for global companies, which is a more favourable option for Apple. Representatives from Apple and Foxconn have not yet commented on the matter.

Source: Weibo