In an attempt to expand its manufacturing base outside of China, Apple has recruited another assembly partner for the iPhone 14 production lineup in India, according to Bloomberg.
Following Foxconn, which started making the iPhone 14 models in India in September, Taiwanese contract maker Pegatron will manufacture the model in the country.
The iPhone 11, iPhone 12, iPhone 13, and most recently the iPhone 14 are all produced at Apple’s Taiwanese assembly partners Foxconn, Wistron, and Pegatron’s iPhone manufacturing facilities in India. The production of the most recent model has seen a significant reduction in the time between Chinese and Indian output from months to weeks.
In the five months since April, Apple has exported $1 billion worth of iPhones from India. Despite being modest by Chinese standards, India’s rising iPhone production indicates Apple’s willingness to invest there as a rival to China’s dominance in electronics assembly, which has recently been weakened by the latter’s zero-COVID policy.
Following an epidemic at the factory, which resulted in the metropolis of nearly 10 million people being shut down, Foxconn’s major Zhengzhou plant, which employs about 200,000 people, has been subject to the same limits. According to one report, when COVID-19 rules in China become more stringent, iPhone production might decrease by as much as 30 per cent the following month.
Despite the coincidence of events, Apple’s long-term production development plans in India are unrelated to China’s lockdown issues, even though they do serve to emphasise the company’s utter reliance on only one nation.
Apple is playing a long game by shifting its production lines away from China, one that won’t have a significant influence on its supply chain for many years. According to a recent Bloomberg article, it would take eight years to relocate just 10 per cent of Apple’s production capacity from China, where over 98 per cent of iPhones are still produced.
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