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.
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.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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