Apple expands iPhone production in India in shift away from China

Apple has begun manufacturing the iPhone 14 in India. “The new iPhone 14 lineup introduces groundbreaking new technologies and important safety capabilities. We’re excited to be manufacturing iPhone 14 in India,” the company said in a statement.

It marks a big shift in Apple’s manufacturing strategy, with most of its products produced in China up until now. Apple’s decision to move some of its production to India is likely due to the ongoing trade tensions between the U.S. and China.

Experts say India is an attractive option for Apple because it has a large population of potential customers. Their labor laws are also more relaxed than those in China.

In saying this, wage growth in India is outpacing that of China. This could eat into Apple’s profits. India is the world’s second-largest smartphone market and Apple currently has just a 3.8 per cent market share. Low cost competitors including Samsung and Xiaomi are continuing to reign supreme.

Experts suggest Apple to move 5 per cent of its iPhone 14 production from late 2022 to India. From 2025, the tech company is expected to produce one in four of its devices outside China.

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Source - database | Page ID - 1154

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