Apple announced that it had started manufacturing its new iPhone 14 in India as part of its plans to diversify its supply chains outside China.
While most of its phones are made in China, rising tensions between Beijing and Washington have forced the tech giant to shift some manufacturing operations out of the country.
Moreover, China’s strict Covid zero policy with widespread lockdowns has significantly disrupted businesses, including Apple, during the pandemic.
Apple unveiled the iPhone 14, a new device with car crash detection technology and emergency satellite connectivity, at a launch event earlier this month.
In a statement, the company praised the iPhone 14’s innovative technologies and significant security capabilities and said: “We’re excited to be manufacturing iPhone 14 in India.”
Taiwan-based manufacturer Foxconn, which makes most Apple smartphones, has operated in the southern Indian state of Tamil Nadu since 2017.
Although only older versions of its devices are manufactured there, Apple is now relying on the factory in India to create its newest phone.
Bringing its manufacturing operations to India also allows the tech giant to increase its presence in the country, where it had a market share of around 4% last year.
However, competition is stiff in the region as Apple must contend with much cheaper smartphones produced by manufacturers in China and South Korea that dominate the Indian market.
Also, despite the company moving manufacturing to India, the new iPhones are not cheaper. High component import duties and taxes impact the final price.
Apple’s announcement about its new operations to make the iPhone 14 in India represents a victory for the administration of Indian Prime Minister Narendra Modi, who launched a campaign to boost the country’s manufacturing and exports eight years ago.
The move also marks the tech giant’s latest move to diversify its supply chains and avoid disruption as tensions between China and the US over Taiwan and trade escalate.
According to the latest analysis by investment bank JP Morgan, Apple would move around 5% of iPhone production to India in 2022 alone.
