The Great Wall of Apple: Despite Production Shifts, China Remains iPhone Maker's Preferred Partner

Despite indications of India becoming one of Apple Inc's AAPL major production hubs, it is unlikely for India to challenge China's manufacturing relationship with the iPhone maker, as per reports.
Although Apple has begun assembling iPhones and exploring making AirPods in India, it has no plan to make Macs and iPads in the country despite its attractive government incentives, Digitimes cites familiar sources.
Chinese EV maker BYD Co, Ltd BYDDF BYDDY failed to bag approval for investment in iPad assembling in India in 2021 amid the India-China geopolitical tensions.
Recent reports indicated that China-based electronics manufacturers might get the green light for their investment projects when they form joint ventures with their Indian counterparts, which is very unlikely for the industry.
India remains vulnerable to the lack of a developed iPhone manufacturing ecosystem in India.
Apple still relies on Chinese-made components, especially insensitive items like non-chip components, as per Bloomberg analyst Steven Tseng.
Despite a spate of suppliers' relocation into Southeast Asia and India, Apple has increased its reliance on specific Chinese-made components, like acoustics, glass, connectors, and display panels.
According to Tseng, 46% of Apple suppliers' plant sites were in China in FY21, down slightly from 50% in FY18.
Price Action: AAPL shares traded lower by 0.92% at $170.51 on the last check Wednesday.
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