Apple took a significant pivot away from using China as a production hub on Monday by announcing it will make its flagship iPhone 14 in India.
California-based Apple said its assembler Foxconn will manufacture the iPhone 14 at its Sriperumbudur plant near Chennai. It marks the first time India will be used as a production hub for a new iPhone. The country had manufactured older iPhones since 2017.
“The new iPhone 14 lineup introduces groundbreaking new technologies and important safety capabilities,” Apple said, according to CNBC. “We’re excited to be manufacturing iPhone 14 in India.”
JPMorgan analysts, who said earlier this month that Apple would push 5% of its global production for the iPhone 14 to India by late 2022, said that could increase to 25% of all iPhones by 2025.
“India is now an attractive location for manufacturing as it offers better labor cost structure while Apple is looking to reduce geopolitical risks,” said Jeff Pu, an analyst with Haitong International Securities, according to Bloomberg.
“To turn India into a major manufacturing site, Apple will help India accelerate its production timeline.”
Foxconn, which produces most of Apple’s iPhones, has usually started its production in China because of supply chain issues regarding critical components. Analysts say the shift could signal that those supply chain challenges for India may no longer be as big of a factor anymore.
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