NEW DELHI — Apple Inc. will make its iPhone 14 in India, the corporate said on Monday, as manufacturers shift production from China amid geopolitical tensions and pandemic restrictions which have disrupted supply chains for a lot of industries.
“The brand new iPhone 14 lineup introduces groundbreaking latest technologies and vital safety capabilities. We’re excited to be manufacturing iPhone 14 in India,” Apple said in a press release.
Apple unveiled its latest line-up of iPhones earlier this month. They are going to have improved cameras, faster processors and longer lasting batteries at the identical prices as last yr’s models.
India is the world’s second-largest smartphone market after China but Apple iPhone sales have struggled to capture a big share of the market against cheaper smartphones from competitors.
The announcement from the Cupertino, California-based company dovetails with Prime Minister Narendra Modi’s push for local manufacturing, which has been a key goal for his government ever since he took office in 2014.
The tech company has bet big on India, where it first began manufacturing its iPhone SE in 2017 and has since continued to assemble a variety of iPhone models there. Apple opened its online store for India two years ago, however the pandemic has delayed plans for a flagship store in India, in keeping with local media reports.
Apple has been moving away from making products in China amid supply chain issues attributable to geopolitical tensions and COVID-19 lockdown restrictions.REUTERS/Andrew Kelly/File Photo
Apple is prone to shift about 5% of its iPhone 14 production to India from later this yr, raising it to 25% by 2025, in keeping with a JP Morgan report quoted by the Press Trust of India news agency.
The analysts expect that just about 1 / 4 of all Apple products to be manufactured outside China by 2025, in comparison with about 5% now. Supply chain risks just like the stringent COVID-19 lockdowns seen in China are likely the trigger for such relocation efforts that can proceed over the following two or three years, the report said.
“Apple has been attempting to diversify its supply chain for some time, but these efforts have grown within the last two years over trade sanctions between the U.S. and China,” said Sanyam Chaurasia, an analyst at Canalys.
Last yr, the tech giant manufactured around 7 million iPhones in India. This news is prone to significantly increase India-made Apple smartphones, he added.
He said the plan to make more iPhones in India might also lead Apple to drop its prices for the Indian market, making it more competitive. “You may adopt a more aggressive pricing strategy if you happen to manufacture locally,” Chaurasia said.
Most of Apple Inc.’s smartphones and tablets are assembled by contractors with factories in China, but the corporate began asking them in 2020 to have a look at the opportunity of moving some production to Southeast Asia or other places after repeated shutdowns to fight COVID-19 disrupted its global flow of products.
Apple hasn’t released details, but news reports say the corporate planned to establish assembly of tablet computers and wireless earphones in Vietnam.
Other corporations are keeping or expanding manufacturing in China to serve the domestic market while shifting export-oriented work to other countries on account of rising wages and other costs, in addition to the problem for foreign executives to go to China on account of anti-COVID-19 travel restrictions.