Apple begins manufacturing iPhone 14 in India • TechCrunch

Apple begins manufacturing iPhone 14 in India • TechCrunch

Apple has begun assembling iPhone 14 models in India, it said Monday, locally producing the current range for the first time in the same calendar year in the world’s second-largest smartphone market, with analysts predicting an even bigger shift in the US giant’s future manufacturing.

Foxconn, the company’s global partner, manufactures the device at its Sriperumbudur facility near Chennai. Domestically produced iPhone units will go on sale in the country later this year. “We are excited to manufacture the iPhone 14 in India,” an Apple spokesperson told TechCrunch in a statement.

Apple started assembling smartphones locally in India in 2017, but until this year, the iPhone maker used manufacturing facilities in India to assemble older generation phones. Apple launched iPhone 14 models earlier this month.

Analysts estimate that Apple will turn India into a global iPhone manufacturing hub by 2025 as it will slowly reduce its dependence on China, where it has been producing the vast majority of its devices for more than a decade. In a report earlier this month, JP Morgan analysts said Apple would move 5% of global iPhone 14 production to India by late 2022 and expand its manufacturing capacity in the country to produce 25% of all iPhones by 2025.

India has attracted investment from Apple manufacturers Foxconn and Wistron in recent years by offering lucrative subsidies as New Delhi moves to make the country an industrial hub. JPMorgan analysts said the presence of foreign production giants, along with “abundant labor resources and competitive labor costs,” makes India a desirable location.

“The iPhone supply chain in India has historically only supplied older models. Interestingly, Apple asked EMS vendors to manufacture iPhone 14/14 Plus models in India in 4Q22, within two to three months of starting production in China,” the report added. The much shorter interval indicates the increasing importance of production in India and possibly increased iPhone allocation to manufacturing in India in the future.

“We believe Apple is only producing iPhone 14/14 Plus models in India right now due to the more complex camera module alignment of the iPhone Pro series (performed by EMS vendors) and increased domestic market demand for the iPhone 14 series (tax saving). We expect the size to start small. in the fourth quarter of ’22 (about 1 million units per month, or 5% of total iPhone volume).”

With Apple expanding its local manufacturing capacity in India, many hope to make its mobile devices more affordable in the country. The base iPhone 14 model, which is priced at $799 in the US, costs INR 79,900 ($980). While the entry-level iPhone Pro Max model costs $1,717 in India, compared to its $1,099 price tag in the US.

Although Apple captures a small share of the market in India, the iPhone maker has been expanding its investments in the country in the past five years. It opened an online Apple Store in the country two years ago and has publicly stated that it is working on launching its first physical store in the country.

Apple rival Samsung India is already a major global manufacturing center and has set up one of its largest factories in the country. The Chinese smartphone manufacturer Xiaomi, which is currently leading the market, along with its competitors Oppo, Vivo and OnePlus are also localizing a number of their devices in the country.

Google is also planning to move some production of its Pixel smartphones to India, The Information recently reported. The company, which has skipped shipping flagship models in India for two generations, said last week that it will launch its upcoming Pixel 7 models in India.

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