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Apple Looking To India, Not China, To Produce Iphones And More: Report

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Covid restrictions have hit Apple iPhone manufacturing in China, and the Cupertino giant is expected to suffer a loss of more than $8 billion. The Wall Street Journal reported that Apple is looking at India to supplement production and minimize the losses.

China accounts for 90% of the iPhones, iPods, and MacBook Air laptops. Still, strict Covid protocols and zero Covid policy effected by the Chinese government are weighing heavily on the production schedules.

Apple Reducing Its Dependence On China

Apple is thinking of reducing its dependence on China, known for its Communist Government and its antagonist policy toward the United States. In April, Apple’s CEO said that Apple manufacturing is genuinely global, and all efforts are being made to optimize the production.

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India seems an attractive option for Apple because of its large workforce and minimum production costs. However, the massive surge in COVID-19 cases in China and the heavy-handed reaction by the state have increased fear that it could affect sales by a massive US$ 8 billion in the first quarter alone.

Apple Could Lose $8 Billion Sales

The current surge in Covid -19 cases has led to lockdowns in major Chinese cities like Shanghai and Zhengzhou in east-central China, where Foxconn, the company which manufactures iPhone for Apple, is located. However, restrictions meant that Apple would not be able to monitor the production sites personally.

Apple is already manufacturing its wares in India through Foxconn Technology Group and Wistron Corp., both Taiwan-based companies. Foxconn has a factory in Chennai which manufactures products for Apple. Apple is rumored to be in talks with suppliers to increase production to include products for export.

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The second entity manufacturing products for Apple is Wistron which has a factory in Karnataka. However, the plant has been shut since December 2020 after a complaint by contract workers over non-payment of wages, inexplicable salary cuts, and long work hours, among other reasons, took a violent turn.

Foxconn plant is also no stranger to strife and violent protests against long working hours, poor sanitary and living conditions, and bad food in the past.

However, the frosty India-China relations could stand as an impediment to Apple’s plans. The two nations had a bloody confrontation in Galwaan Valley in Ladakh in 2020 and the more recent construction of a second bridge over the Pangong Lake.

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Manoj Nair: With a decade of news writing across various media platforms, Manoj is a seasoned professional. His dual role as an English teacher underscores his command over communication. He adeptly covers Politics, Technology, Crypto, and more, reflecting a broad and insightful perspective that engages and informs diverse audiences.

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