A look at the new iPhone 14 at Apple’s event at their headquarters in Cupertino, California, September 7, 2022.
Carlos Barria Reuters
Apple Last Monday, it was assembling the iPhone 14 in India while the American technology giant is trying to get rid of some products from China.
“The new iPhone 14 lineup introduces the latest cutting-edge technologies and important safety features. We are excited to manufacture the iPhone 14 in India,” the company said in a statement.
Apple’s main iPhone connector, Foxconnmanufactures the devices at its Sriperumudur factory outside Chennai.
The Cupertino, California, giant has been manufacturing iPhones in India since 2017 but these are mostly older models. This time with the iPhone 14, Apple is manufacturing its new product in India for the first time, close to the launch of the device. Apple introduced the iPhone 14 earlier this month.
Apple will sell the phones produced in India domestically but will also export them to other markets around the world. Customers in India will start receiving the manufactured devices in the next few days.
JPMorgan analysts said in a statement this month that Apple will move 5% of its global production for the iPhone 14 to India by the end of 2022. Apple could also make 25% of all iPhones by 2025 in India, said JPMorgan.
Apple’s focus on manufacturing in India reflects the tech giant’s desire to shift production from China and grow customers in India, which is currently a small market for the company.
Apple still relies heavily on China for most iPhone production.
But Beijing is insisting on a lockdown strategy to control the resurgence of Covid as much of the world looks to open up their societies. The zero-Covid policy has disrupted production at factories across China that are on lockdown and has exposed some of the weaknesses in Apple’s supply chain.
India has sought to develop its domestic electronics industry through incentives.
Meanwhile, Apple has been trying to increase sales in India, the world’s second largest cell phone market. Apple had a 3.8% market share in India last year, as lower-cost competitors like Samsung and China. Xiaomi continue to dominate, according to Counterpoint Research.
However, Apple is the biggest selling brand in the special segment, phones over 45,000 Indian rupees ($552), in the second quarter of this year. This is thanks to the powerful design of the previous iPhone 13.
The iPhone 14 starts at 79,900 rupees ($980).
“Apple has a strong presence in India. India is among the 20+ countries in the world where premiumization has started,” Tarun Pathak, director of research at Counterpoint Research, told CNBC.