iPhone 14 "Made in India"

Apple has started making its new iPhone 14 in India as it starts to shift its supply chain away from China.

File photo: iPhone 14 and 14 Plus

iPhone "Made in India"

Based on a report by BBC, the iPhone company initially made most of its products in China.

However, the increasing tensions between Washington and Beijing have prompted the company to transfer some of its production outside China.

The China zero-COVID policy, which caused lockdowns across the country, was also a factor as it resulted in major disruptions in business operations during the pandemic.

The new iPhone 14 line-up introduces groundbreaking new technologies and important safety capabilities. We're excited to be manufacturing iPhone 14 in India, Apple said in a statement.

With this move, Apple is also hoping to increase its footprint in India from a 4 percent market share as of 2021. It currently struggles to compete with much cheaper smartphones from South Korea and China as they dominate the Indian market.

Manufacturing iPhones in India, however, does not mean the smartphone will be cheaper. This is because of high import duties on components and other taxes.

Source: Apple

Currently, Taiwan-based Foxconn, which manufactures the majority of iPhones, has had an operation in the Indian state of Tamil Nadu since 2017 where it produces the older models.

The increased production in India is also a win for Prime Minister Narendra Modi's administration as it launched the Make in India campaign eight years ago to boost the country's manufacturing and export industries.

This move also marks Apple’s latest move to diversify its supply chains to avoid disruptions in its operations amid US-China tensions due to Taiwan and trade issues.

JP Morgan analysts have earlier expected that Apple will move 5 percent of its iPhone production to India this year. By 2025, a quarter of all iPhone production will be in the South Asian nation, they added.

Your iPhone "Made in India." What do you think about this?

Source: BBC