Apple now produces its new iPhone in India rather than China

Image credit: EconoTimes

According to Apple, it has begun producing the iPhone 14 in India as part of a diversification of its supply chains away from China.

Despite shifting some of its production outside of China as tensions between Washington and Beijing increase, the company still manufactures the majority of its phones there.

During the epidemic, China’s “zero-Covid” measures, which have led to several lockdowns, have also significantly disrupted corporate operations.

This month, the tech titan debuted the newest iPhone. Since 2017, the state of Tamil Nadu in southern India has been home to an operation run by Taiwan-based Foxconn, which produces the bulk of Apple’s smartphones.

However, Apple is now placing a large wager on producing the iPhone 14 – its newest product – in India.

Apple is hoping to expand its presence in India by placing a bet on it. Its market share there as of the previous year was roughly 4%.

The American juggernaut has had difficulty competing with the significantly less expensive South Korean and Chinese handsets that continue to rule the Indian smartphone market.

However, due to high import fees on components and other levies, making the phones in India does not guarantee that they will be cheaper there.

Indians will therefore still have to pay a premium price to obtain an iPhone, even though it is marked “Made in India.”

An accomplishment for the government of prime minister Narendra Modi is the news that iPhone production has increased in India.

With rising tensions between China and the US over Taiwan and trade, Apple’s statement is its most recent step toward diversifying supply lines to prevent disruptions.

The investment bank JP Morgan’s experts stated earlier this month that they anticipate Apple will relocate about 5% of iPhone manufacturing to India this year.

According to the government of the South East Asian nation of Vietnam, Apple supplier Foxconn invested $1.5 billion (£1.4 billion) in Vietnam last year.

The corporation reportedly obtained a $300 million contract to expand its facilities in the country’s north to boost output, according to state media reports from last month.

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