Apple to move 20% iPad and Apple Watch production to Vietnam, 25% iPhone to India

apple moves ipad apple watch iphone production

Apple started assembling some of its devices in Vietnam and India a few years ago, slowly cutting its reliance on China. The Cupertino-giant is now gearing up to make the two nations key global manufacturing hubs, according to JP Morgan’s analysts.

In a client report, analysts at JP Morgan said Apple will move 5% of global iPhone 14 production to India by late 2022, and expand its manufacturing capacity in the nation to produce 25% of all iPhones by 2025.

On the other hand, Vietnam will contribute 20% of all iPad and Apple Watch productions, 65% of AirPods by 2025, and 5% of MacBook, the report said.

India has attracted investments from Foxconn and Wistron in recent years by offering lucrative subsidies as the country moves to make the country a manufacturing hub. The presence of the foreign manufacturing giants, combined with competitive labor costs and ample labor resources, make India a desirable location, the analysts said.

Apple’s rival Samsung identifies India as a key global manufacturing hub and has set up one of its largest factories in the country. Chinese smartphone makers Oppo, Vivo, Xiaomi, and OnePlus also locally assemble a number of their handsets in the country.