Apple begins production of iPhone 14 in India

BLOOMBERG : Apple Inc. started production of its new iPhone 14 in India earlier than expected, after a surprisingly smooth rollout of production, which reduced the lag between China and India production from a few months to just a few weeks. .

The American tech giant made the announcement on Monday, weeks after the marquee device was announced on September 7. It worked with Foxconn Technology Group, its most important manufacturing partner, with the initial goal of iPhone assembly in Chennai about two months after the global launch, Bloomberg News reported in August.

People familiar with the matter said the partners sped up the process after resolving supply chain issues, making production run more smoothly than expected.

Apple, which has long made most of its iPhones in China, is looking for alternatives as Xi Jinping’s administration comes into conflict with the US government and imposed lockdowns across the country. disruption of economic activity. At the same time, Narendra Modi’s administration is keen to make the country a viable competitor to China in terms of technology and manufacturing capacity, especially as Western investors and corporations begin to protest against Beijing’s achievements.

Jeff Pu, analyst at Haitong International Securities, said: “India is currently an attractive location for the manufacturing industry as it has a better labor cost structure while Apple is looking to mitigate local risks. politics. India accelerates production. “

“We are delighted to be manufacturing iPhone 14 in India,” Apple said in an emailed statement on Monday without discussing production progress. A representative for Foxconn declined to comment.

Apple partners like Foxconn, which makes most of the world’s iPhones, typically begin assembling the device in India about six to nine months after the Chinese factories. That’s partly because it takes more time to secure and ship critical components to a supply chain that’s less familiar with the process. Assembling iPhones often requires coordination between hundreds of suppliers and meets Apple’s notoriously tight quality control and deadlines.

However, analysts like TF International Securities Group’s Ming-Chi Kuo said they expect Apple to eventually ship new iPhones from both countries at roughly the same time, a major milestone in the company’s efforts. Apple aims to diversify its supply chain and build redundancy.

Matching the pace of China’s iPhone production would also mark a major achievement for India, which has always welcomed its appeal as an alternative.

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