The new iPhone 14 at the Apple event on September 7, 2022 at the Apple headquarters in Cupertino, California.
Carlos Barria | Reuters
apple The US tech giant is assembling its flagship iPhone 14 in India, it said Monday, as it considers moving some production out of China.
“The new iPhone 14 lineup introduces groundbreaking new technologies and important safety features. We are excited to manufacture iPhone 14 in India,” the company said in a statement.
Apple’s primary iPhone assembler, Foxconnmanufactures the device at its Sriperumbudur factory on the outskirts of Chennai.
The Cupertino, Calif.-based giant has been making iPhones in India since 2017, but these were usually older models. is on the horizon. Apple announced the iPhone 14 earlier this month.
Apple not only sells phones produced in India domestically, but also exports them to other markets around the world. Customers in India will start receiving locally manufactured devices in the coming days.
JP Morgan analysts said in a note earlier this month that Apple will move 5% of its global iPhone 14 production to India by the second half of 2022. JP Morgan said Apple could make 25% of all iPhones in India by 2025.
Apple’s focus on manufacturing in India highlights the tech giant’s desire to diversify production away from China and attract more customers in India, which is currently a small market for the company.
Apple still relies heavily on China for the majority of iPhone production.
But Beijing has stuck to a strategy of lockdown to control COVID Most of the world is making a comeback, even as they try to open up their societies. The zero-coronavirus policy has disrupted production at lockdown factories across China, highlighting potential weaknesses in Apple’s supply chain.
India focused on Boost local electronics manufacturing through incentives.
Meanwhile, Apple is looking to expand sales in India, the world’s second largest smartphone market. Apple last year in India he only had a 3.8% market share. Xiaomi According to Counterpoint Research, it remains dominant.
However, Apple was the best-selling brand in the ultra-premium segment, mobile phones priced over INR 45,000 ($552) in the second quarter of this year. This is thanks to the momentum of his iPhone 13 model of the previous generation.
The iPhone 14 starts at 79,900 rupees ($980).
Tarun Pathak, research director at Counterpoint Research, told CNBC, “Apple has strong momentum in India. India is one of more than 20 countries around the world where the premium trend is just beginning.” said.