New Delhi – Apple will make its iPhone 14 in India, the company said on Monday, as manufacturers shift production from China amid geopolitical tensions and pandemic restrictions that have disrupted supply chains for several industries. .
“The new iPhone 14 lineup introduces new technologies and significant security capabilities. We are excited to manufacture the iPhone 14 in India,” Apple said in a statement.
Apple unveiled its latest line-up of iPhones earlier this month. They’ll have better cameras, faster processors, and longer-lasting batteries at the same prices as last year’s model.
India is the world’s second largest smartphone market after China, but Apple iPhone sales are struggling to capture a larger share of the market compared to cheaper smartphones from competitors.
The Cupertino, California-based company’s announcement coincides with Prime Minister Narendra Modi’s push for local manufacturing, which has been a key target for his government since taking office in 2014.
The tech company has bet big on India, where it first started manufacturing its iPhone SE in 2017 and has continued to assemble several iPhone models there since then. According to local media reports, Apple opened its online store for India two years ago, but the pandemic has delayed plans for a flagship store in India.
The latest model will be shipped by Foxconn, a leading iPhone assembler, which has its facilities on the outskirts of Chennai, a city in South India.
According to a JP Morgan report quoted by Press Trust of India news agency, Apple may shift around 5% of its iPhone 14 production to India from the end of this year, increasing it to 25% by 2025.
Analysts expect about a quarter of all Apple products to be manufactured outside China by 2025, compared to around 5% now. The report said that supply chain risks such as the stringent COVID-19 lockdowns seen in China are the trigger for such relocation efforts that will continue for the next two or three years.
“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 US and China,” said Sanyam Chaurasia, an analyst at Canalys.
Last year, the tech giant manufactured around 7 million iPhones in India. He added that this news is likely to drive significant growth in Apple smartphones made in India.
He added that plans to make more iPhones in India may force Apple to lower its prices for the Indian market, making it more competitive. “If you manufacture locally, you can adopt a more aggressive pricing strategy,” Chaurasia said.
Apple Inc. Most of the U.S. smartphones and tablets are assembled by contractors from factories in China, but the company is likely to move some production to Southeast Asia or other locations in 2020 after repeated shutdowns to fight COVID-19. asked to see. disrupted its global flow of products.
Apple hasn’t released details, but news reports say the company plans to set up assembly of tablet computers and wireless earphones in Vietnam.
Other companies are keeping or expanding manufacturing in China to serve the domestic market while moving export-oriented work to other countries due to rising wages and other costs, as well as anti-COVID-19 travel for foreign officials. Due to which it is difficult to visit China. Sanctions.
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