Apple takes part of the production of the iPhone 14 from China to India. A transfer that occurs in full escalation of tensions between the Asian giant and the United States and after the announcement of the manufacture of the Apple Watch in Vietnam.
This is a historic decision, as it is the first time that an iPhone generation has been produced at the same time in more than one country. According to the company, the objective is to reduce the technological gap between the two countries and cover the local market demand.
Apple has long been manufacturing most of its most important products in China. However, the country presided over by Xi Jinping has had several clashes with the United States over time, which adds to its ‘Covid zero’ repercussions policy that has had negative repercussions on the country’s economic activity and has caused delays in the manufacture of the iPhone 14.
As reported by Bloomberg , Apple expects the first phones to be finished by the end of October or November, after their launch in September. This already supposes a delay in the points of sale. Similarly, taking into account the company’s plans, this process is expected to include not only the iPhone 14, but also the iPhone 14 mini, iPhone 14 Pro and iPhone 14 Pro Max. Still, Apple is working to diversify its supply chain and plans to ship the latest iPhone from both countries at the same time. To do this, the company has focused its operations on China and later on India.
The North American multinational has chosen India because Apple suppliers have been manufacturing their products in that country since 2017. Also, it is the second largest smartphone market and it is estimated that some of the iPads will be produced there. Likewise, Apple offers support and financial incentives for the country’s administration to bet on the production of technology under its Made in India program .
Problems and other markets
Foxconn Technology Group, the main manufacturer of iPhones, has studied the process of shipping components from China and the assembly of the iPhone 14 device in India. But as reported by Bloomberg , this simultaneous production in both countries is not realistic for this year . .
In order to become less reliant on China, Nikkei Asia reported last week that Apple was negotiating production of the MacBook and Apple Watch in Vietnam. However, that country is one of the main production centers, since iPads and AirPods were already manufactured.
The novelty is that the production of the Apple Watch requires a more complex and advanced process due to the miniaturization of the components. In addition, other products such as smart speakers, HomePod, are also expected to start manufacturing in Southeast Asia. On the other hand, other regions such as India and Mexico are becoming increasingly important to contract manufacturers supplying American brands as they seek to diversify production outside of the Asian giant.