A Chinese newspaper has questioned Apple’s decision to move its manufacturing outside of China.
China and the US did not have good relations, which affects business. Such an effect has been observed in Apple’s iPhone manufacturing, which largely takes place in China. As Apple now decides to move its iPhone production out of China and into countries like India, a Chinese daily has commented on the challenges the Cupertino firm will face. The newspaper even questions Indian politics and the legal system, which poses production challenges.
A People’s Daily story talks about Apple’s decision to shift production of the iPhone from China to Brazil, India and other countries. The story talks about the US policy of decoupling from China and how it could affect brands like Apple, whose main profit currently comes from China. The report also talks about India and the challenges Apple may face if it moves its 25 percent manufacturing capacity to India by 2025, according to previous reports.
India may pose other challenges, says the Chinese newspaper
The publication says Apple may not be having an easy time in India. “Apple’s move to India may be successful, but the process must not be smooth as it depends on how India can adjust its labor policy and whether India can improve its work ability in a short period of time and keep pace with basic facilities, infrastructure as well as services . If Apple’s presence is to survive and grow, it must be based on India’s improved policies and legal systems, which will be beneficial for more foreign companies to set foot in India in the future,” the report said.
Apple currently only manufactures select iPhone models in limited quantities in India. Apple’s contract manufacturers Foxconn and Wistron take care of the iPhone manufacturing scene in India. Foxconn now assembles the iPhone 14, iPhone 13 and iPhone 12 in India, while Wistron takes care of the iPhone SE models. However, local assembly does not affect Indian prices as most iPhone components are manufactured outside of India, which primarily includes China.
However, Apple has struggled in China with its frequent COVID-related lockdowns. Moving some production to India should be easier on Apple’s supply chain, where such challenges are rare. Hence, just a month after its global launch, Apple started manufacturing the iPhone 14 in India. However, the iPhone 14 is seeing less demand this year as Apple needs to focus production on the iPhone 14 Pro and iPhone 14 Pro Max models.