Rumors are again swirling that Apple is ready to move its iPad production from Chine to India. According to CNBC, the Big Tech company is already deep into negotiations with the Indian government, although no commitments have been made.
Apple has consistently tried to make in-roads into India, perhaps the biggest market where the company has little presence. Sales of iPhones are not high in India but Apple has been wanting to become a part of the economy within the country for several years.
Bringing manufacturing to India would help Apple put a foothold in the country while also bringing jobs to locals.
It also comes at a time when the company is looking to diversify its manufacturing away from China. In recent months, Apple has seen the potential problems having too much reliance on one production country can cause.
Production Woes
Apple is facing a major reduction in the number of iPhone Pro (iPhone 14 Pro) models due to ongoing disruptions at Foxconn's largest manufacturing plant in China. In October, I reported on Foxconn issues in Zhengzhou amid the ongoing COVID-19 pandemic in China. The country is still swept by the virus and the Chinese government has taken a hardcore approach.
Because of the resulting backlog in production, Apple is likely to ship millions fewer iPhone Pro models this year during the Holiday season.
While Apple sees India as a good alternative, the company has concerns about the lack of skilled talent in the workforce. There is a lack of expertise in building complex hardware like iPads and Apple manufacturing in the country would require a large training program.
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