Apple Inc might make one out of four iPhones in India by 2025, JPMorgan & Chase Co analysts said yesterday, as the tech giant moves some production away from China, amid mounting geopolitical tensions and strict COVID-19 lockdowns in the country.
JPMorgan expects Apple to move about 5 percent of iPhone 14 production from late this year to India, which is the second-biggest smartphone market in the world after China.
It is also estimating that about 25 percent of all Apple products, including Mac, iPad, Apple Watch and AirPods, would be manufactured outside China by 2025 from 5 percent currently.
The US company has bet big on India since it began iPhone assembly in the country in 2017 via Wistron Corp (緯創), and later with Pegatron Corp (和碩) and Hon Hai Precision Industry Co (鴻海精密), also known as Foxconn Technology Group (富士康科技集團) internationally, in line with the Indian government’s push for local manufacturing.
The COVID-19 pandemic hampered supply chain relocation plans for businesses, but with restrictions easing, more companies, including Apple, are reaccelerating these efforts this year.
“Taiwanese vendors such as Hon Hai and Pegatron play a key role in the relocation to India. In the medium to long term, we also expect Apple to qualify local India manufacturing suppliers,” said JPMorgan analysts led by Gokul Hariharan, who is rated 4 out of 5 for estimates accuracy.
A Bloomberg report earlier this month said that Indian conglomerate Tata Group was in talks with Wistron to establish a joint venture to assemble iPhones in the country amid Apple’s plans to cut production lag with China.
In other news, the Indian government yesterday raised fiscal support for new semiconductor facilities to cover 50 percent of project costs and said it would remove a ceiling for maximum permitted investment for display manufacturing as it moves to boost local production.
The announcement comes as Indian Prime Minister Narendra Modi’s government seeks to attract more big-ticket investments under a US$10 billion incentive plan for chip and display production, aiming to make India a key player in the global supply chain.
“On the basis of discussion with potential investors, it is expected that work on setting up the first semiconductor facility will commence soon,” a government statement said.
The government had previously agreed to cover between 30 and 50 percent of the cost of setting up new display and chip plants.
The government yesterday said it would also cover 50 percent of the capital expenditure required to set up semiconductor packaging facilities.
Last week, oil-to-metals conglomerate Vedanta Ltd and Hon Hai signed a pact with India’s Gujarat to invest US$19.5 billion in the western state to set up semiconductor and display production plants.
INEXPENSIVE POWER: Group chairman Gautam Adani said 70% of the investment would go into energy transition, with a focus on green hydrogen India’s Adani Group is to invest more than US$100 billion over the next decade, most of it in the energy transition business, chairman Gautam Adani said yesterday, as the ports-to-energy conglomerate accelerates an already aggressive expansion plan. After founding the group in 1988 as a commodities trading business, the 60-year-old has ventured into multiple sectors, mainly in the infrastructure space and in line with the priorities of the government of Indian Prime Minister Narendra Modi. “As a group, we will invest over US$100 billion of capital in the next decade,” Adani, the world’s second-richest person, told the Forbes Global CEO Conference in
Foxconn Technology Group (富士康科技集團) is to invest US$1.75 million in a joint venture with PT Indika Energy Tbk to explore commercial electric vehicle (EV) and electric battery business opportunities in Indonesia, the Taipei-based company said yesterday. With the investment, Foxconn would hold a 40 percent stake in the joint venture, PT Foxconn Indika Motor, while PT Indika would own 60 percent. The collaboration is an extension of a memorandum of understanding signed in January by Indika Energy, Foxconn, Gogoro Inc (睿能創意) and others aiming to build an electric vehicle supply chain in Southeast Asia’s biggest economy. Gogoro, in which Foxconn owns a 0.76
PRICE POINT: While overall demand has lagged expectations, higher-priced iPhone 14 Pro models appear to attract more attention than entry-level versions, sources said Apple Inc is backing off plans to increase production of its new iPhones this year after an anticipated surge in demand failed to materialize, people familiar with the matter said. The Cupertino, California-based company has told suppliers to pull back from efforts to increase assembly of the iPhone 14 product family by as many as 6 million units in the second half of this year, said the people, asking not to be named as the plans are not public. Instead, the company would aim to produce 90 million handsets for the period, about the same level as in the second half
StarLux Airlines Co (星宇航空) aims to turn a profit next year by expanding its passenger operations to North American and Southeast Asian markets and by increasing its cargo business, CEO and general manager Glenn Chai (翟健華) told a news conference in Taipei yesterday. The airline would offer new flights to Okinawa and Sapporo in Japan, as well as resume flights to Da Nang, Vietnam, at the end of next month to meet demand in the fourth quarter — a peak travel season, Chai said, adding that by that time, StarLux would be flying to a total of 13 destinations. It would