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Apple moving production of iPhone 14 from China to India

iPhone 14 Pro and Pro MAX
Image source: apple.com

Apple’s latest iPhone will apparently be manufactured in India, a lot earlier compared to the previous models due to Covid-related shutdowns and geopolitical tensions in China.

It is likely that some of iPhone 14 stock will be manufactured in India and launched in September 2022. According to Apple, the company started manufacturing iPhone 14 series devices in India in April.

So far, no spokespeople from Apple commented on the matter.

The Wall Street Journal reported in May that Apple informed numerous contract manufacturers that they wanted to increase production outside of China citing Beijing’s strict anti-Covid policy as the main reason among others.

According to various analysts, more than 90% of Apple products are made by contractors in China which poses a risk due to the tensions between Beijing and Washington.

In recent years, India’s government has been trying to get global companies such as Apple to move their manufacturing from China to India. Narendra Modi. the Prime Minister of India has been working with the government to create a simpler tax structure for smartphone manufacturers and incentivize them to move their manufacturing to India.

Analysts claim that the biggest hurdle for Apple at the moment is that India doesn’t have the same amount of unskilled as well as skilled labor available as China does. In addition to that, China’s roads, ports, and infrastructure are more developed compared to India’s.

Foxconn Technology Group and Wistron Corp have recently opened factories in India in order to produce iPhones for India’s domestic market, however, it appears that both of them are getting ready for the production of the iPhone 14.

According to Tarun Pathak, the research director at Counterpoint Research in India, Apple has been having issues with boosting its sales largely due to competition from less expensive rival companies. Apple’s market share in India was 1% back in 2018, however, it is expected to rise to 4% by the end of 2022.

A source familiar with the matter stated that one of the manufacturers in India will soon begin a stage called New Product Introduction. This is necessary for mass production as it requires translating the brand’s product blueprints and prototypes into a detailed manufacturing plan.

Last year, India accounted for 3.1% of Apple’s global production which is a significant increase compared to the 1.3% in 2020. However, this is expected to rise to 5%-7% by the end of the year.

Rajeev Chandrasekhar, India’s junior minister for information technology stated that he has no doubt that Apple is in a position to launch its latest mobile product from India and that Indian manufacturing has matured enough. He also stated that any smart company would be eager to tap into India’s domestic market.

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