In an effort to further diversify away from China, Apple Stock (NASDAQ:AAPL) is debating shifting some of the production of its well-known iPad tablet to India, according to CNBC. The news source stated that although Apple (NASDAQ:AAPL) has continuous negotiations with Indian officials, no firm arrangements have been made, according to two people close to the Indian government.
Apple (NASDAQ:AAPL) reported that it made $7.17 billion on the iPad in its most recent quarter, down from $8.25 billion in the same period last year. Apple (AAPL) said in September that it was producing portions of its iPhone 14 smartphone line here.
Due to Prime Minister Narendra Modi’s aim for local manufacturing and to close the production gap between the two nations, it was reported in August that Apple (AAPL) might look to India for the production of the iPhone 14. Investment company J.P. Morgan predicted earlier this year that Apple might move 5% of its iPhone manufacture to India this year and up to a quarter of its iPhone production there by 2025.
The price of Apple stock (NASDAQ:AAPL) dropped slightly to $146.65 during Monday’s midday session. Apple (AAPL) has upped its efforts in recent months to diversify its supply chain away from China, looking to other nations like India and Vietnam as well as the U.S.
Apple wants to expand its supply network
One company is becoming concerned about how dependent it has become on the second-largest economy in the world even as China continues to relax its COVID regulations. With a supply chain and outsourcing strategy in place since the late 1990s, the nation has played a crucial role in helping Apple (NASDAQ:AAPL) transform into the most valuable company in the world. The IT giant is currently looking at other parts of Asia, such as India and Vietnam, but there will be difficulties and the process won’t be simple.
Apple Stock: Analysts Are Getting Less Bullish
Featured Image – Pexels © Armand Valendez