Apple starts producing the iPhone 14 in India, denoting a major change in its manufacturing system

Apple said Monday it is manufacturing its flagship iPhone 14 in India as the U.S. technology giant hopes to move some production away from China.

“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.

Apple’s fundamental iPhone assembler, Foxconn, is manufacturing the gadgets at its Sriperumbudur factory on the outskirts of Chennai.

The Cupertino, California, giant has been manufacturing iPhones in India beginning around 2017 however these were generally older models. This time with the iPhone 14, Apple is creating its most recent model in India for the first time, near the gadget’s launch. Apple presented the iPhone 14 earlier this month.

Apple will sell India-produced phones locally yet in addition export them to different markets worldwide. Clients in India will start getting the locally manufactured gadgets in the next few days.

JPMorgan experts said in a note this month that Apple will move 5% of its global production for the iPhone 14 to India by late 2022. Apple could likewise make 25% of all iPhones by 2025 in India, JPMorgan said.

Apple’s focus on manufacturing in India features the tech giant’s desire to expand production away from China and lift clients in India, which is at present a small market for the organization.

Apple actually depends intensely on China for most of iPhone production.

Yet, Beijing has continued with a procedure of lockdowns to control Coronavirus resurgences even as most of the world hopes to open their societies. The zero-Covid policy has disturbed production at factories across China where lockdowns occur and featured a few expected points of concern in Apple’s supply chain.

India has hoped to help local manufacturing of electronics through incentives.

In the mean time, Apple has been hoping to increment sales in India, the world’s second-biggest cell phone market. Apple had recently a 3.8% market share in India last year, as lower cost competitors, for example, Samsung and China’s Xiaomi keep on dominate, as per Counterpoint Research.

Nonetheless, Apple was the top-selling brand in the ultra-premium segment, which are phones more than 45,000 Indian rupees ($552), in the second quarter of this current year. That is thanks major areas of strength for to of its past generation iPhone 13 models.

The iPhone 14 beginnings at 79,900 rupees ($980).

“Apple has a strong momentum in India. India is among the 20+ countries in the world where the premiumization trend has just started,” Tarun Pathak, research director at Counterpoint Research, told.