Apple iPads, made in India, could soon become a reality
What's the story
Apple has been exploring options to reduce its reliance on China and diversify its manufacturing. The company is now in talks with the Indian government to move some of its iPad production to India, according to CNBC. This year, the company started producing its latest iPhone 14 in India, indicating a shift in its manufacturing strategy.
Context
Why does this story matter?
India has been emerging as a viable alternative to China as far as manufacturing is concerned. The latter's recent issues have forced companies to look for other options. However, India will have to present itself as a better alternative to countries such as Vietnam to make use of this opportunity. If not, India will be forced to count its missed chances, again.
Shift
China's supply chain snafus are forcing Apple out
China has long been the dominant country in Apple's supply chain. However, the company is now actively looking to shift some of its production outside China, reported The Wall Street Journal. India and Vietnam have emerged as the leading choices for the company. China's recent supply chain snafus are the reason behind Apple's search for new manufacturing centers.
Limitations
India's lack of highly-skilled talent could affect discussions
iPads made in India could be a reality soon. Two sources close to the Indian government told CNBC that Apple is in discussion with Indian officials to move some of the iPad production to India. However, India's lack of highly-skilled individuals in building complex devices like iPads could affect the discussions. The foreign policy tensions between India and China could also become a roadblock.
Supply issues
China's zero-COVID policy affected manufacturing in the country
China's status as the world's apex manufacturer has been taking a hit recently. It all started with the China-US trade war that made several manufacturers worried. The crisis deepened after the country imposed strict COVID-19 preventive measures. Supplies again took a hit as the country entered lockdown after lockdown, even after the rest of the world completely opened its market and factories.
Foxconn
The protests at the Foxconn plant made Apple uncomfortable
China's supply chain issues took a turn for the worse when workers in Foxconn's iPhone manufacturing plant in Zhengzhou protested against the company's handling of the recent lockdown. The turmoil at the factory has made Apple uncomfortable about having its production tied up in a single place. Apple also has plans to expand its pool of assemblers.