According to recent estimates, almost all (95%) of all iPhones are made in China. Apple's problem with centralization is worse than that – 80% of all iPhones at the Foxconn factory in Zhengzhou, China. And now the factory is partially closed because of China's "zero COVID" policy.
This will affect the iPhone 14 Pro and iPhone 14 Pro Max the most – in an unprecedented move, Apple has officially warned that achieving production targets will be difficult in the coming months as factories operate at reduced capacity. Usually this is the kind of fact that Cupertino keeps to himself.
Apple partner Foxconn plans to double the workforce at its India factory, according to a local government source who spoke to Reuters. This will increase the number of workers from the current 17,000 to 70,000.
This is what the source told Reuters:
Apple supplier Foxconn plans to double the workforce at its iPhone factory in India over two years, two government officials familiar with the matter say, pointing to production adjustments due to disruptions in China […]
This massive expansion will take time (two years per report) so it will not solve the current crisis. But the latest developments may accelerate Apple's plans to reduce its dependence on China to prevent this situation from resurfacing.
Analysts from JP Morgan report that as much as 25% of iPhone production could be moved to India by 2025. Cupertino is already producing iPhone 14 phones in India, starting just weeks after production in China started. The plan is that next year (allegedly) the production of the iPhone 15 will start simultaneously with that in China. So, the vanilla series has had some diversification. You can see in the chart above that production is divided between the three companies. However, the Pro model is only made by Foxconn and it happens exclusively in Zhengzhou (with around 200,000 workers making iPhones, where it has earned the nickname "iPhone City").