Change Of Course: That's Why Apple Will Also Produce The Iphone 14 In India In The Future

The Iphone 14 In India In The Future

Apple wants to make the iPhone 14 more and more in India in the future. So, the US group is making a major change in its strategy. The biggest goal of the company is to make less of its products in China.

In India, Apple has begun making the iPhone 14. This is the first time that a US company has made a new model series locally in the country with the second most smartphone users in the world. A company spokesman told the Associated Press (AP) that this is true:

The new iPhone 14 comes with a lot of new technologies and security features that are very important. We’re proud that the iPhone 14 is made in India.

Iphone 14: Apple Wants To Increasingly Relocate Production

AP cites a report from the US bank JP Morgan to say that Apple plans to make 5% of its iPhone 14s in India this year. Analysts say that by the year 2025, it should be 25%. Also, you can probably assume that this is true for all of their products.

Apple wants to make about 25% of all of its products in India by 2025, instead of just 5%. Analyst Sanyam Chaurasia said:

Apple has been trying to change its supply chain for a while, but because of trade restrictions between the US and China, it has been trying even harder in the last two years.

A few years ago, Apple started putting together some of its devices in India and Vietnam. This helped the company become less dependent on China. Analysts at JP Morgan say that Cupertino-giant is now getting ready to make the two countries important manufacturing hubs around the world.

In a report they sent to clients on Wednesday, JP Morgan analysts said that by the end of 2022, 5% of the world’s iPhone 14 production will move to India. By 2025, 25% of all iPhones will be made there.

TechCrunch looked at a report that said Vietnam will make 20% of all iPads and Apple Watches, 5% of all MacBooks, and 65% of all AirPods by 2025.

In the past few years, India has gotten Foxconn and Wistron to invest by giving them generous tax breaks. This is part of New Delhi’s plan to make India a manufacturing hub. Analysts said that India is a good place to live because there are a lot of foreign production giants there and there are “plenty of labour resources and competitive labour costs.”

Apple Wants To Reduce Dependence On China

The iPhone 14 will be sent to India by the company that puts it together, Foxconn. The prices of the devices in India could also go down if more production were done outside of India. China is still where most iPhones and iPads are made by contractors.

But China, which has the most smartphone users in the world, hasn’t been a good place for Apple so far because the US company hasn’t been able to match the prices of its local competitors. So, the company has been thinking about moving its production for a few years.

Change Of Strategy Due To Supply Bottlenecks And Geopolitical Tensions

The main reasons why Apple is changing its strategy are political tensions between China and the United States and problems with getting supplies. Apple’s production in China has recently stopped because of what China is doing to stop the COVID-19 pandemic.

The company that makes iPhones hasn’t said much about its new plans yet, but it is said that the company plans to move iPad and wireless headset assembly to Vietnam.