Although it may take years for Apple’s drastic expansion of iPhone manufacture in India to meet 50% of worldwide demand, component suppliers in China are already feeling the effects.
Chinese manufacturers are responding to earlier accusations that Apple was considering a major expansion of its manufacturing operations in India and to reports about the production of the iPhone 15.
The stock prices of Chinese companies that manufacture every Apple device are already being impacted by Apple’s decisions, claims the South China Morning Post. For example, it blames the move for the loss of AirPods orders for component supplier Goertek and the resulting 60% reduction in the company’s profitability estimate.
According to the South China Morning Post, Ofilm, a manufacturer of camera components, has experienced a decline in sales and profitability. But it was because Apple stopped taking orders once Ofilm was added to the US sanctions list for violating human rights.
In contrast, according to the newspaper, India had a twofold increase in iPhone shipments between April 2022 and December 2022 when compared to the same months in 2021.
Although it still only makes up less than 5% of the total, a Taiwan-based analyst is quoted by the South China Morning Post as saying that by 2027, it may account for 50% of all iPhones. In the past, JP Morgan analysts predicted that by 2025, India would produce 25% of all iPhones.
