Apple’s big shift away from China will see the iPhone 14 manufactured in India
APPLE’S BIG SHIFT – In a move that is sure to please Indian officials, Apple has begun manufacturing the iPhone 14 in India.
“The new iPhone 14 lineup introduces groundbreaking new technologies and important safety capabilities. We’re excited to be manufacturing iPhone 14 in India,” the company said in a statement.
It marks a big shift in Apple’s manufacturing strategy, with most of its products produced in China up until now.
Apple’s decision to move some of its production to India is likely due to the ongoing trade tensions between the U.S. and China.
For years, Apple has relied on Chinese factories to assemble its products. But current tensions have made it difficult for Apple to source parts from the nation.
Experts say India is an attractive option for Apple because it has a large population of potential customers. Their labour laws are also more relaxed than those in China.
In saying this, wage growth in India is outpacing that of China. This could eat into Apple’s profits.
India is the world’s second-largest smartphone market and Apple currently has just a 3.8 per cent market share. Low cost competitors including Samsung and Xiaomi are continuing to reign supreme.
In research by JPMorgan, experts suggest Apple to move 5 per cent of its iPhone 14 production from late 2022 to India. From 2025, the tech company is expected to produce one in four of its devices, including iPads and watches, outside China.
