Apple says it will make some iPhone 14 in India Business & Economic News

Amid geopolitical tensions and pandemic restrictions, Apple has asked manufacturers to shift production from China.

Apple said it will make some iPhone 14s in India as manufacturers shift production from China as geopolitical tensions and pandemic restrictions disrupt supply chains in many industries.

“The new iPhone 14 series introduces ground-breaking new technologies and important security features. We are excited to manufacture the iPhone 14 in India,” Apple said in a statement on Monday.

Apple unveiled its latest iPhone lineup earlier this month. They’ll come with improved cameras, faster processors, and longer-lasting batteries at the same price as last year’s model.

India is the world’s second-biggest smartphone market after China, but Apple’s iPhone sales have struggled to grab a lion’s share of the market with cheaper smartphones from a range of Chinese brands.

Bloomberg News reported last month The company plans to manufacture some of the iPhone 14 in India.

The Cupertino, California-based company’s announcement coincides with Prime Minister Narendra Modi’s push for local manufacturing, which has been a key goal of his administration since taking office in 2014.

The tech company first started making the iPhone SE in 2017 and has continued to assemble multiple iPhones there opened its online store in india The pandemic delayed plans to open a flagship store in India two years ago, according to local media reports.

The latest models will be shipped by major iPhone assembler Foxconn, whose factory is located on the outskirts of the southern Indian city of Chennai.

Diversified Supply Chain

Apple may move about 5% of its iPhone 14 production to India starting later this year, increasing that to 25% by 2025, according to a JPMorgan report cited by the Press Trust of India.

Analysts expect nearly a quarter of Apple’s products will be made outside China by 2025, up from about 5% today. Supply chain risks like China’s strict COVID-19 lockdown could trigger such relocation efforts, which will continue over the next two or three years, the report said.

“Apple has been trying to diversify its supply chain for some time, but these efforts have increased over the past two years due to trade sanctions between the U.S. and China,” said Canalys analyst Sanyam Chaurasia.

Last year, the tech giant produced around 7 million iPhones in India. He added that the news could significantly increase the number of Apple smartphones made in India.

Plans to make more iPhones in India could also lead Apple to lower its prices in the Indian market, making it more competitive, he said. “If you produce locally, you can have a more aggressive pricing strategy,” Chaurasia said.

Most of Apple’s smartphones and tablets are assembled by contractors with factories in China, but after multiple shutdowns to fight COVID-19 disrupted its global operations, the company began asking them to consider the Possibility to move part of production to Southeast Asia or elsewhere product flow.

Apple has not released details, but news reports say the company plans to set up a tablet and wireless earphone assembly plant in Vietnam.

With rising wages and other costs, and as foreign executives struggle to visit China due to COVID-19 travel restrictions, other companies are retaining or expanding manufacturing in China to serve the domestic market, while shifting export-oriented jobs to other countries.

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