02 Jun 2023 -

Apple’s supplier preferences shifting away from China

indian supply chains

Apple added five new suppliers in mainland China last year but cut eight, while production bases in India rose to 14 from 11, signaling the iPhone maker’s accelerated expansion in the country, according to a report by the South China Morning Post.

Globally, Apple added 18 new suppliers while cutting 19, resulting in a small adjustment in its supply chain, but one that has made India a clear winner, writes SCMP.

While this is a significant shift, China remains a production stronghold with 151 of Apple’s 188 suppliers having facilities in the country.

Apple’s shift from China to India is a long-term strategy aimed at diversifying its supply chain. While completely eradicating reliance on China may not be feasible, increasing production in India offers Apple a more diversified supply base.

This move not only mitigates risks associated with disruptions in China but also taps into India’s growing market potential. Apple recently opened its first two stores in India, first in Mumbi and then Dehli. By deepening its manufacturing ties with India, Apple sets a precedent that could attract other global players in the electronics manufacturing ecosystem, positioning India as a top destination for electronics production.

Apple’s investment in India holds the promise of enhancing its regional presence and tapping into India’s lucrative consumer market. This synergetic partnership holds mutual benefits, capable of bolstering Apple’s position while simultaneously fostering the growth of the Indian economy.

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

For more help with looking at supply chain options, contact Astute Electronics

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