Apple now manufacturing iPhone 14 in India
Apple is placing a significant wager on the manufacturing prowess of India, the world’s second-largest smartphone market after China, with the production of its newest device, the iPhone 14.
headquartered in Cupertino, California With the release of the iPhone SE in 2017, Apple began producing iPhones in India. Apple currently produces some of its most technologically advanced iPhones here, including the iPhone SE, iPhone 12, iPhone 13, and the new iPhone 14. The iPhone 14 models, with an enhanced camera, potent sensors, and a satellite messaging feature to send SOS texts in an emergency, were unveiled earlier this month by Apple Inc. The iPhone 14, Plus, Pro, and ProMax are the four new models in the lineup.
The Made in India iPhone 14 will reportedly start shipping to local customers in the coming days. India will produce phones for both the domestic market and export. The Foxconn facility in Sriperumbudur, which is outside of Chennai, will handle the shipment of the iPhone 14. The largest contract electronics manufacturer and primary iPhone assembler in the world is Foxconn.
In response to queries, Apple told PTI in a statement: “We’re thrilled to be manufacturing iPhone 14 in India. There are ground-breaking new technologies and significant safety features in the new iPhone 14 lineup. The iPhone 14 was released on September 7, 2022, and customers in India, among other markets, have had access to it since September 16, 2022.
In India, the recognisable brand has a long history that dates back more than 20 years. With the impending opening of an Apple retail store, Apple is poised to strengthen its commitment to the nation where it launched its online store in September 2020.
The company’s recent manufacturing expansion builds on a number of its national initiatives, including the App Design and Development Accelerator in Bengaluru and initiatives with neighbourhood organisations to support community training and development in renewable energy.
Since the US tech giant reported a “near doubling” of revenue in India for the three months ending in June 2022, the country is proving to be a sweet spot for growth.
In a July earnings call, Apple CEO Tim Cook said: “We broke records in the Americas, Europe, and the rest of the Asia Pacific region for the June quarter. In both developed and emerging markets, the June quarter saw revenue records, with very strong double-digit growth in Brazil, Indonesia, and Vietnam and a nearly doubling of revenue in India. According to a recent JP Morgan report on “Apple Supply Chain Relocation,” Apple “is likely to move about 5% of iPhone 14 production to India from late 2022 and reach 25% by 2025.”
Additionally, compared to the current five percent, it is predicted that by 2025, close to twenty-five percent of all Apple products will be produced outside of China. The cycle of production relocation and the search for a “China+1” manufacturing approach for the Apple supply chain began in late 2018, according to the report.
Over the past two years, COVID-19 put a stop to this, but now that the pandemic threat has subsided, “we have seen more companies in the Apple supply chain re-accelerating supply chain relocation efforts,” the brokerage reported. “Supply chain risks” (like lockdowns associated with COVID-19 in Shanghai and Shenzhen) are likely to be the main factor driving these changes in the next two to three years, it added.
Given their lower labour costs, adequate skilled manpower support, and appealing policies and government support, Southeast and South Asian countries (like India, Vietnam, and Thailand) have emerged as preferred locations for geopolitical diversification away from China for Apple food chain vendors, according to JP Morgan analysts.
While India’s shine has been enhanced by the booming smartphone market, New Delhi’s policy initiatives in the electronics industry have prodded major international suppliers to expand in India and encouraged new players to establish bases. India is redoubling its efforts to replicate its smartphone manufacturing success in other areas of the electronics ecosystem as it makes serious efforts to reduce its reliance on imports.
The government has announced enticing incentives to promote domestic production and export of IT products, telecom, and networking gear, and a Rs. 76,000 crore semiconductor scheme was unveiled late last year to promote domestic chip and display panel production.
The Center last week increased the financial support for new facilities (across technology nodes) to cover 50% of the project cost in an effort to entice global giants like Intel and TSMC.
