Manzana production of the new iPhone 14 in India, as the tech giant looks to diversify its supply chain outside of China. In this way, it moves part of its production due to the growing geopolitical tensions in the Asian country and the strict restrictions caused by the COVID-19.
“The new iPhone 14 lineup introduces innovative new technologies and important security features. We are delighted to be manufacturing iPhone 14 in India.” the company said in a statement, confirming weeks of speculation.
Thus, Apple will move around the 5% of iPhone 14 production to India, the second market smart phones largest in the world after China, by the end of 2022.
China doesn’t seem to be in Apple’s sights for a while
Also, it is estimated that around 25% of all Apple products included Mac, iPad, Apple Watch Y AirPods, would be manufactured outside of China by 2025, compared to 5% this year.
Companies like Foxconn Y wistronthe traditional iPhone makers, have set up new factories in India at China’s expense to ease Apple’s transition.
The companies say that this change of territory is necessary to meet the demands of the local market, but the delays caused by the pandemic and political tensions may also have played a role.
A Bloomberg report said earlier this month that the Indian conglomerate Tata Group is in talks with Wistron to set up a joint venture to assemble iPhones in the country, as part of Apple’s plans to loosen manufacturing ties with China.
Reasons why Apple would not want to depend on China
This new announcement does not mean that Apple abandons manufacturing in China, but that it would have less dependence on the country’s processes.
Reasons for leaving China include the China’s strict restrictions on COVID-19, that are forcing the closure of factories and entire cities and causing delays in the production and distribution of various industries, including the iPhone 13 last year. While other countries take measures to contain the pandemic to maintain a normal population rate, China continues to apply strict restrictions.
Another reason is the political tensions between the administrations of Xi Jinping and Washington. These were confirmed after Nancy Pelosi’s visit to Taiwan. The White House promised this month to send troops to the island, as it does not in Ukraine, along with other NATO partners if they need to defend themselves against China.
To this must be added the tensions that China also maintains with India, that increase from time to time at the border. These tensions are sometimes resolved in the tech marketplace by banning programs and companies from across the border.
India seems to be a good place for tech companies
Not only Apple considered India an attractive country for the production of its devices. Samsung regards India as a major global manufacturing hub and has established one of its largest factories in the country.
Also, the Chinese mobile phone manufacturer Xiaomicurrently the market leader, along with its rivals Oppo, Live Y one plus they also assemble some of their phones in the country.
Of course and how could it be otherwise, Google it also plans to move some of its smartphone production Pixel to India, The Information recently reported.
