After announcing iPhone 14 on September 7, production has begun in the world’s second-largest smartphone market. Apple said in a statement, “We are pleased to start manufacturing iPhone 14 in India.”
The Foxconn plant in Sriperumbudur, which is outside of Chennai, will handle the shipment of the iPhone 14.
The largest contract electronics company and primary iPhone assembler in the world are Foxconn.
As the tech giant looks to diversify its supply chain away from China, Apple Inc. has started producing its latest and greatest iPhone 14 in India.
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After announcing iPhone 14 on September 7, production has begun in the world’s second-largest smartphone market.
Apple said in a statement, “We are pleased to start manufacturing iPhone 14 in India.”
Apple claims that with the release of the iPhone 14, “groundbreaking new technology and crucial safety capabilities” are introduced.
Located in Cupertino, California In 2017, with the iPhone SE, Apple began local assembly of the device in India.
Apple now produces its most cutting-edge phones there, such as the iPhone SE, iPhone 12, iPhone 13, and the brand-new iPhone 14.
In the next few days, the Made-in-India iPhone 14 should start making its way to local buyers, according to sources. India’s smartphone production will serve both the domestic market and international exports.
Foxconn’s Sriperumbudur factory, located just outside of Chennai, will be the distribution hub for the iPhone 14. Foxconn is a leading iPhone assembler and the largest contract electronics company in the world.
While Apple has always manufactured the vast majority of iPhones in China, JP Morgan analysts predicted last week that the company might manufacture one out of every four iPhones in India by 2025.
Prior iPhones were manufactured in India some six to nine months after manufacturing began in China. This time around, the time frame is much shorter, lasting only a few weeks.
The iPhone 14 was released on September 7, 2022, and as of September 16, 2022, it was also available for purchase in India alongside the United States and other markets.
The legendary label’s presence in India dates back more than two decades. Apple’s commitment to the country was demonstrated when it opened an online store there in September 2020, and it will be taken to the next level with the opening of an Apple retail location.
The new manufacturing facility is the latest in a series of efforts by Apple to strengthen its foothold in India. These include the App Design and Development Accelerator in Bengaluru and collaborations with local groups to provide training and education on renewable energy technologies to residents.
The US software giant is finding its niche in India’s thriving market, with revenue in the nation “near tripling” in the quarter ending in June 2022.
On Apple’s earnings call in July, CEO Tim Cook said: “The Americas, Europe, and the rest of Asia-Pacific all had record-breaking performance in the second quarter of this year. Developed and emerging countries alike had record revenues in the second quarter of the year, with double-digit growth in Brazil, Indonesia, and Vietnam, and nearly double-digit growth in India.”
According to recent research by JP Morgan titled “Apple Supply Chain relocation,” Apple “is projected to relocate roughly 5 per cent of iPhone 14 production to India from late 2022 and reach 25 per cent by 2025.”
It is also expected that by 2025, up from the current 5%, roughly 25% of all Apple products will be made outside of China.
According to the research, “US-China trade tensions set off the production relocation cycle and the quest for a ‘China+1’ manufacturing model for the Apple supply chain in late 2018.
With pandemic fears fading, “we have witnessed more companies in the Apple supply chain re-accelerating supply chain relocation efforts,” the brokerage said. COVID-19 slowed this down during the past two years.
It went on to say that in the coming two to three years, “supply chain concerns” like COVID-19-related shutdowns in Shanghai/Shenzhen will be a major motivating factor.
Lower labour wages, sufficient qualified human assistance, and appealing regulations and government support have made Southeast & South Asian countries (including India, Vietnam, and Thailand) attractive alternatives to China for Apple food supply chain suppliers, as per JP Morgan analysts.
New Delhi’s legislative push in the electronic industry has urged huge global vendors to grow in India and also driven new businesses to set up base, while the country’s booming smartphone market has added to its lustre.
India is making strong attempts to reduce its dependency on imports after finding success in domestic smartphone manufacture.
Attractive incentives have been offered to encourage domestic manufacturing and export of telecom & networking equipment and IT products, and a Rs 76,000 cr semiconductor programme was announced at the end of 2017 to increase domestic production of chips and display panels.
Last week, the Centre increased the financial assistance for the new facility (across technological nodes) to meet 50 per cent of the project cost, to entice global giants like Intel and TSMC.
