Despite signs of India becoming one Apple Inc (NASDAQ: AAPL) major production hub, India is unlikely to challenge China’s manufacturing ties with the iPhone maker, according to reports.
Although Apple has started assembling iPhones and exploring making AirPods in India, it has no plans to manufacture Macs and iPads in the country despite attractive government incentives, Digitimes cites familiar sources.
Chinese EV Manufacturers BYD Co., Ltd. (OTC: BYDDF) (OTC: BYDDY) failed to get approval to invest in iPad assembling in India in 2021 amid India-China geopolitical tensions.
Recent reports indicated that China-based electronics manufacturers may get the green light for their investment projects when they form joint ventures with their Indian counterparts, which is highly unlikely for the industry.
India remains vulnerable due to the lack of a developed iPhone manufacturing ecosystem in India.
According to Bloomberg analyst Steven Tseng, Apple is still heavily dependent on Chinese-made components, especially insensitive items such as non-chip components.
Apple has increased its reliance on specific Chinese-made components such as acoustics, glass, connectors and display panels, despite suppliers moving to Southeast Asia and India.
According to Tseng, 46% of Apple’s plant sites in FY21 were in China, down slightly from 50% in FY18.
Price Action: AAPL shares were trading down 0.92% at $170.51 at the last check on Wednesday.
Photo by Jan Kuss from Pixabay
Don’t miss out on real-time alerts on your stocks – Join Benzinga Pro for FREE! Try the tool that will help you invest smarter, faster and smarter.
This article The Great Wall of Apple: Despite production shifts, China-made iPhone maker’s favorite partner originally appeared on Benzinga.com
,
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Source: finance.yahoo.com
