Early last week, Apple announced it would begin the assembling of its latest device, iPhone 14, in India. This marks the first time Apple is shifting production from China to India just after launching a new iPhone. Usually the trillion dollar tech company shifts production between the two countries seven to eight months after the new products hit the market.
What’s more
A special report on ‘Apple Supply Chain relocation’ revealed that not only is the company moving 5 percent of the production of iPhone 14 to India, Apple hopes to increase the number to 25 percent by 2025.
- Vietnam is another country Apple is looking to increase production in.
- The Taiwanese companies including Foxconn, Wistron, and Pegatron have headed the production project in India.
Why this is happening
Apple began assembling the iPhones in India as far back as 2017 to reduce its reliance on China. This is as tensions between the US and China have intensified over the last few years.
Also, by moving its production to India, Apple hopes to make the devices more appealing to the Indian market, as locally producing the devices could make them more affordable in India. Sources say the iPhone 14 currently sells for 79,900 rupees (about $980) in India, as against the $799 price tag in the US.
What you should know
Other companies, including Google, are considering moving their manufacturing hub outside of China. Sources say Google is planning on producing its Pixel smartphone in either India or Vietnam.