Apple to start manufacturing iPhone 14 in India – report

Amidst growing geopolitical tensions between China and the US, US technology giant Apple plans to start manufacturing the iPhone 14 in India about two months after its release in China, according to media reports.

Apple has predominantly used China to manufacture devices but is now exploring new options because of growing tensions between the two countries.

Figure 1: India has been trying to position itself as an alternative to China for the manufacturing of devices and electronics.
(Source: robertharding/Alamy Stock Photo)

In addition, China recently imposed stringent lockdowns in parts of the country to control the spread of COVID-19, which has disrupted the country's economic activity.

Mind the gap

Apple is also in the process of working with suppliers to grow manufacturing in India, and the first iPhone 14s are likely to be available there from late October or November 2022 after their release in September. This will help the company leverage the Diwali festival season in India, which begins Oct. 24.

The move will help reduce the gap between the release date and its availability in India. While Apple has been assembling iPhones in India through Foxconn and other partners since 2017, there is still a lag between the product's release and its availability in the country.

Typically, Apple devices are launched in India six to nine months after their release date. Reducing the delay in availability means that the company will be able to capture a greater market share, which is crucial as the country moves closer to the commercial launch of 5G.

Destination wedding

India has been trying to position itself as an alternative to China for the manufacturing of devices and electronics. The government has launched several initiatives, including the production linked incentive (PLI) scheme, to promote the manufacturing of devices and electronics.

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Apple's partner Foxconn joined the scheme about two years ago. However, India is facing stiff competition from Vietnam and other countries in the region as US firms try to move manufacturing out of China.

The lack of an effective supply chain is generally the key issue faced by device manufacturers. Apple's partners, Foxconn and Wistron, faced labor-related problems in the country a few years ago when workers protested against the salaries, as well as the quality of food provided by the companies.

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— Gagandeep Kaur, contributing editor, special to Light Reading