India's production is not going well, Apple moves some iPhone production capacity back to China

On July 23, CNMO learned that some media reported that Apple has implemented a "risk aversion" and supply chain diversification strategy in recent years, especially its attempt to shift production orders to India. However, this transformation process has not been smooth sailing. Last year, Indian factories suffered setbacks when assembling iPhone 15. The products were returned due to quality problems and had to take price reduction measures, forcing Apple CEO Tim Cook to personally go to China to adjust the supply chain layout.

1. Apple has adjusted its strategy and moved part of its production capacity back to mainland China. BYD, Luxshare Precision and other giants have joined the iPhone 16 supply chain.

2. Foxconn’s Indian factory will produce iPhone 15 from August 2023, aiming to shorten the shipping time difference between India and China and achieve supply chain synchronization.
3. Foxconn’s India factory follows the mainland China factory in supplying iPhone 15 to the world only a few weeks later, and the production cycle is closely aligned.

4. The number of iPhone 15 OEMs in Indian factories only accounts for 10%, but it faces many problems:

   • Reliance on imported parts from mainland China, which affects quality and efficiency
   • Low yield (only about 50%) and poor hygiene management Jia (E. coli exceeds the standard)
5. These problems have blocked the export of products to Europe and mainland China, affecting sales. Apple was forced to cut prices and promote sales.

   

   With most of the iPhone 16 OEM production capacity returning to mainland China, OEM giants such as Foxconn are actively recruiting new employees and increasing the proportion of spare parts purchased from the mainland. This change has also caused some supply chain manufacturers that originally planned to move to India to waver and choose to wait and see for the time being.

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