Apple Inc began making its new iPhone 14 in India sooner than anticipated, after a surprisingly smooth production rollout that slashed the lag between Chinese and Indian output from months to mere weeks.
The US tech giant made the announcement yesterday, weeks after the marquee device’s Sept. 7 unveiling.
It had worked with Hon Hai Precision Industry Co (鴻海精密), known internationally as Foxconn Technology Group (富士康科技集團), with the original goal of assembling iPhones in Chennai about two months after global launch.
Photo: Bloomberg
The partners quickened the process after resolving supply chain issues, which helped production go smoother than expected, people familiar with the matter said on condition of anonymity.
Apple, which long made most of its iPhones in China, is seeking alternatives as Chinese President Xi Jinping’s (習近平) administration clashes with the US government and imposes COVID-19 lockdowns across the country that have disrupted economic activity.
Indian Prime Minister Narendra Modi’s administration is keen to make his country a viable competitor to China in technology and production capability, especially as Western investors and corporations begin to sour on Beijing’s track record.
“India is now an attractive location for manufacturing as it offers better labor cost structure while Apple is looking to reduce geopolitical risks,” Haitong International Securities Group (海通國際證券) analyst Jeff Pu (蒲得宇) said.
“To turn India into a major manufacturing site, Apple will help India accelerate its production timeline,” he said.
“We’re excited to be manufacturing iPhone 14 in India,” Apple said in a statement yesterday without discussing a production timeline.
A Hon Hai representative declined to comment.
Apple partners such as Hon Hai, which makes the majority of the world’s iPhones, typically begin assembling the device in India about six to nine months after Chinese factories. That is partly because more time is needed to secure and ship critical components to a supply chain less accustomed to the process.
Still, analysts such as Kuo Ming-chi (郭明錤) of TF International Securities Group Co (天風國際證券) have said they anticipate that Apple could eventually ship new iPhones from both countries at about the same time, a milestone in Apple’s efforts to diversify its supply chain and build redundancy.
Apple’s partners began making iPhones in India in 2017, the start of a years-long effort to build manufacturing capabilities in the country.
Besides offering backup to existing operations, the country of 1.4 billion is a promising consumer market, and the Modi administration has offered financial incentives under its “Make in India” program.
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