After the launch of the new iPhone 14 on September 16, 2022, news started to roll out on Monday, September 26th that it will start manufacturing roughly 5% of the new iPhone in India using Apple’s Foxconn facilities in Scriperumbudur. But why the quick shift in production after the launch?
India is the second biggest smartphone market right behind China. In 2017, Apple had previously manufactured iPhones in India for its oldest models such as iPhone 11, 12, and 13.
Apple still relies heavily on China to produce the majority of its parts for decades, but in recent years the growing tensions between the U.S and China and the strict, no covid policy, and the threat of another lockdown made them look for alternatives in the supply chain.
Shortening production times also sounded appealing from 6-9 months to less to help handle the demand for the new iPhone.
"We're excited to be manufacturing iPhone 14 in India," an Apple spokesperson said.
But what does this mean for the future of Apple? In trajectory, JP Morgan analysis stated that by 2025 India will be producing up to 25% of its production. As Apple decreases its dependence from China.
Producing the iPhone in India will also make the device more affordable and appealing to the Indian market. In a recent article by The Verge “According to TechCrunch, the standard iPhone 14 currently costs 79,900 rupees (about $980) in India, as opposed to the $799 price tag in the US.”
The shift also leads other companies to start looking at India as a new hub for smartphone manufacturing. Google is currently considering producing up to a million Pixel smartphones which are roughly 20% of its annual production in India as they start to introduce the new Pixel 7 and 7 Pro in October. Apple also started producing iPads in Vietnam along with Microsoft and Fire TV shifting production.
What are your thoughts about the shift in smartphone manufacturing to India? Leave a comment down below.