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Amid the global ongoing China plus one movement, which is a result of the geopolitical tensions and pandemic-related restrictions on trade, China’s loss has turned into a profitable deal for India. Apple announced on Monday that the new iPhone 14 will be manufactured in India. India is the world’s second-largest smartphone market after China, however, iPhone sales have struggled to capture a large share of the market due to the price factor.
“The new iPhone 14 lineup introduces groundbreaking new technologies and important safety capabilities. We’re excited to be manufacturing iPhone 14 in India.”
~ Official Statement by Apple
The latest iPhone 14 will be shipped out by Foxconn, a major iPhone assembler, whose facilities are on the outskirts of Chennai. Apple began manufacturing iPhones in India back in 2017 with the iPhone SE, and continues to assemble a number of models in the country, revealing the tech company’s big bet on India. Apple is likely to shift about 5% of its iPhone 14 production to India from later this year, raising it to 25% by 2025, according to a JPMorgan report.
The analysts expect nearly a quarter of all Apple products to be manufactured outside China by 2025, compared to about 5% now. Supply chain risks like the stringent COVID-19 lockdowns seen in China are likely the trigger for such relocation efforts that will continue over the next two or three years, the report said.
