Apple begins making the iPhone 14 in India, marking a big shift in its manufacturing strategy

- Advertisement -


  • Apple on Monday said it is assembling its flagship iPhone 14 in India as the US tech giant seeks to shift some production away from China.
  • Apple’s main iPhone assembler, Foxconn, is manufacturing the devices at its Sriperumbudur factory on the outskirts of Chennai.
  • Apple has been manufacturing iPhones in India since 2017 but these were usually older models. With the iPhone 14, Apple is producing the latest model in its lineup at the time of the device’s launch.

- Advertisement -

Apple on Monday said it is assembling its flagship iPhone 14 in India as the US tech giant seeks to shift some production away from China.

- Advertisement -

“The new iPhone 14 lineup introduces new technologies and significant security capabilities. We are excited to manufacture the iPhone 14 in India,” the company said in a statement.

Apple’s main iPhone assembler, Foxconn, is manufacturing the devices at its Sriperumbudur factory on the outskirts of Chennai.

- Advertisement -

The Cupertino, Calif., giant has been manufacturing iPhones in India since 2017, but these were usually older models. This time with the iPhone 14, Apple is producing its latest model in India for the first time, nearing the launch of the device. Apple introduced the iPhone 14 earlier this month.

Apple will sell phones produced in India locally, but will also export them to other markets globally. Customers in India will start receiving the locally manufactured device in the next few days.

Analysts at JPMorgan said in a note this month that Apple will move 5% of its iPhone 14’s global production to India by the end of 2022. Apple may also make 25% of all iPhones in India by 2025, JPMorgan said.

Apple’s focus on manufacturing in India highlights the tech giant’s desire to diversify production away from China and promote customers in India, which is currently a small market for the company.

Apple has strong momentum in India. India is one of the 20+ countries in the world where premiumization has just started.
Tarun Pathak
Director of Research, Counterpoint Research

Apple is still heavily dependent on China for most of the iPhone production.

But Beijing has stuck to its strategy of lockdown to control the resurgence of Covid, even as much of the world seeks to open up their societies. The zero-Covid policy has disrupted production at factories across China where lockdowns occur and exposed some potential vulnerabilities in Apple’s supply chain.

India wants to promote local manufacturing of electronics through incentives.

Read more about tech and crypto from CNBC Pro

Asset manager says a FAANG stock looks ‘very attractive’ in the medium term

The dangers and promises of quantum computing are drawing to a close. Here are the ways to invest

Ether is down about 20% since the merger. What’s going on over here

Meanwhile, Apple is looking to increase sales in India, the world’s second largest smartphone market. According to Counterpoint Research, Apple’s market share in India was just 3.8% last year, as it was dominated by low-cost competitors such as Samsung and China’s Xiaomi.

However, Apple was the best-selling brand in the ultra-premium segment with phones costing over 45,000 Indian rupees ($552) in the second quarter of this year. This is thanks to the strong speed of its previous generation iPhone 13 model.

The price of the iPhone 14 starts at Rs 79,900 ($980).

“Apple has strong momentum in India. India is one of the 20+ countries in the world where the premiumization trend has just started,” Tarun Pathak, director of research at Counterpoint Research, told CNBC.

Credit: www.cnbc.com /

- Advertisement -

Recent Articles

Related Stories