Top American company, Apple has decided to manufacture their new series, iPhone 14 in India due to the rising tension, conflicts, and pandemic restrictions that have disrupted supply chains for many industries in China.
In a new statement, they announced:
“The new iPhone 14 lineup introduces groundbreaking new technologies and important safety capabilities. We’re excited to be manufacturing iPhone 14 in India.”
Last month Apple presented the features of their new series, a faster processor, better camera action, and other promising characteristics.
India is the world’s second-largest smartphone market after China but Apple sales have struggled to capture a large share of the market against cheaper smartphones from competitors.
Apple is likely to shift about 5% of its iPhone 14 production to India later this year, raising it to 25% by 2025, as far the phone assembling is concerned.
Speaking on the new development, Sanyam Chaurasia, an analyst at the Canalys said:
“Apple has been trying to diversify its supply chain for a while, but these efforts have grown in the last two years over trade sanctions between the U.S. and China.” He also said that the smartphone giants might drop its iPhone prices in India once they start mass production.
“You can adopt a more aggressive pricing strategy if you manufacture locally.”
Most of Apple Inc.’s smartphones and tablets are assembled by contractors with factories in China, but the company started asking them in 2020 to look at the possibility of moving some production to Southeast Asia or other places after repeated shutdowns to fight COVID-19 disrupted its global flow of products.
The market in China is becoming harder day by day and companies are moving production to other countries due to the rising wages and other costs, as well as the difficulty for foreign executives to visit China due to anti-COVID-19 travel restrictions.