Apple to Move Some iPhone Production Away from China to India
- September 26, 2022
- Posted by: Quatro Strategies
- Category: Manufacturing
U.S. tech giant Apple announced on Monday its plans to manufacture iPhone 14s in India, as it prepares to move some of its production away from China. The company launched its flagship smartphone at an event earlier this month, where it focused on safety upgrades. “The new iPhone 14 lineup introduces groundbreaking new technologies and important safety capabilities. We’re excited to be manufacturing iPhone 14 in India,” Apple said in a statement.
Apple is expected to move around 5% of its iPhone 14 production from late 2022 to India, the world’s second largest smartphone market after China. However, Apple has a market share of just 3.8% in the country, where lower cost competitors such as Samsung and Xiaomi continue to dominate.
Apple could make one out of four iPhones in India by 2025.
Apple’s main iPhone assembly contractor Foxconn is manufacturing the devices at its Chennai factory in China.
The tech giant has been manufacturing iPhones in India since 2017 but these have been usually older models. This time with the iPhone 14, Apple is manufacturing its latest model in India for the first time.
The company is expected to sell India produced smartphones both to the local market and export them to other markets.
Apple’s focus on manufacturing in India highlights the tech giant’s desire to diversify production away from China and boost customers in India, which is currently a small market for the company.
Apple still relies heavily on China for the majority of iPhone production. However, Beijing has been adamant to control Covid resurgences even as most of the world looks to open their societies. The zero Covid policy has disrupted production at factories across China where lockdowns take place and highlighted some potential weak spots in Apple’s supply chain.
India, on the other hand, has been looking to boost local production of electronics through incentives.
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