Apple's iPhone Production Move To India Signals Broader Tech Exodus From China, With Microsoft And Amazon Following Suit, Says Analyst

Apple Inc. AAPL has commenced the production of its newly launched iPhone 16 series in India, reflecting a broader trend among tech giants like Microsoft Corp. MSFT, and Amazon.com Inc. AMZN who are turning away from China.

What Happened: Historically, the California-based tech giant relied on China for manufacturing its high-end smartphones, while Indian suppliers focused on low-end and older models. However, the latest reports indicate that Apple is now mass-producing its new iPhone lineup, including the high-end Pro series, in India alongside China, South China Morning Post reported on Thursday.

Analysts suggest that this move is part of Apple’s strategy to diversify its supply chain amid worsening relations between Beijing and Washington. It also highlights Apple’s growing confidence in India’s advanced manufacturing capabilities.

“These moves reflect a broader shift unfolding where major tech companies like Apple, Microsoft, and Amazon are moving production away from China, given various security and economic risks,” stated Karthik Nachiappan, a research fellow at the National University of Singapore's Institute of South Asian Studies.

See Also: Samsung To Reportedly Slash Global Workforce By Up To 30% In Certain Divisions Amid Intense Competition From Apple, Huawei

Why It Matters: Apple's decision to manufacture the iPhone 16 series in India marks a significant shift in its supply chain strategy. This move comes amid escalating tech tensions between the U.S. and China. Earlier this year, Microsoft Corp. urged its China-based AI team to relocate, highlighting the increasing strain on tech companies operating in China.

Furthermore, OpenAI, backed by Microsoft, announced restrictions on its AI tools in China, reflecting similar concerns.

Meanwhile, Amazon has been ramping up recruitment efforts in China to compete with local e-commerce giants, indicating a nuanced approach to its China strategy.

Read Next:

Image by FellowNeko via Shutterstock

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: NewsGlobalTechGeneralAppleverseChinaConsumer TechIndiaPooja RajkumariStories That Matter
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!