USA – China: Tech War Pushes Apple to Move Production to India

As a result of the tug-of-war between China and the USA blocking Chinese high-tech companies from accessing cutting-edge technology, US microelectronics giant Apple is shifting its production to India, where it will launch mass production of the new iPhone 16 model, which will be equipped with artificial intelligence features.

According to Japanese newspaper Nikkei Asia, Apple wants to speed up the commissioning of a new industrial production chain away from China, which has been hit by a series of US sanctions. Another reason, according to Nikkei Asia, is related to the growing competition between Chinese, South Korean manufacturers, and Apple in China’s smartphone market.

By shifting several manufacturing and intellectual resources to India, Apple “recorded a 19% year-on-year growth in iPhone shipments in the first three months of 2024.” Without disclosing specific numbers, Apple announced that the move “generated record profits in India in the first quarter of the year.” In any case, the Chinese market also accounted for about 17% of Apple’s total revenue between January and March 2024.

To regain its foothold in China and other global markets, Apple seems to be banking on the success of the next iPhone 16, the first model equipped with generative artificial intelligence features. According to Nikkei Asia, Apple has already ordered components from its suppliers to produce 90 million smartphones. In the past, Apple has ordered components for a maximum of 70-80 million phones in preparation for its new models. The new smartphone is scheduled to launch in a little over a week, on September 9.