Apple’s newest phone, the iPhone 14, will be made in India as the global tech titan makes a big bet on manufacturing expertise in the world’s second-largest smartphone market after China.
Cupertino, California-headquartered Apple started manufacturing iPhones in India in 2017 with the iPhone SE. Today, Apple makes some of the most advanced iPhones in the country including iPhone SE, iPhone 12, iPhone 13 and now iPhone 14.
Earlier this month, Apple unveiled its latest iPhone series – the iPhone 14 models – with improved cameras, powerful sensors and a satellite messaging feature for sending SOS texts in emergencies. The new lineup consists of four models: iPhone 14, Plus, Pro and Pro Max.
According to sources, the Made-in-India iPhone 14 will start reaching local customers in the coming days. The phones manufactured in India will be for both the Indian market and exports.
The iPhone 14 will be shipped from Foxconn’s Sriperumbudur facility outside Chennai. Foxconn is the world’s largest contract electronics manufacturer and a major iPhone assembler.
When contacted, Apple said in a statement to PTI: “We look forward to manufacturing iPhone 14 in India.” “The new iPhone 14 lineup introduces groundbreaking new technologies and significant security capabilities,” it said.
The iPhone 14 was launched on 7 September 2022 and is available to customers in India from 16 September 2022, simultaneously with the US and other markets.
The iconic brand has a long history in India that started 20 years ago. Apple launched its online store in the country in September 2020 and is all set to strengthen its commitment with the upcoming launch of Apple retail stores.
Recent product expansion builds on several Apple initiatives in the country, including an app design and development accelerator in Bangalore and programs with local organizations to support renewable energy training and development for communities.
India’s vibrant market is becoming a sweet spot for the US tech giant, as the company reported “nearly doubling” its revenue in the country for the quarter ending June 2022.
Apple CEO Tim Cook said during an earnings call in July: “We set June quarter records in the Americas, Europe and the rest of the Asia Pacific region. We also saw June quarter revenue records in both developed and emerging markets. Strong double-digit growth in Brazil, Indonesia and Vietnam.” And nearly double the revenue in India.” JPMorgan’s recent report on ‘Apple Supply Chain Relocation’ predicts that Apple is “likely to move 5 percent of iPhone 14 production to India in late 2022 and reach 25 percent by 2025”.
It is also estimated that nearly 25 percent of all Apple products will be manufactured outside of China by 2025, compared to the current five percent.
“US-China trade tensions have led to a product relocation cycle and exploration of a ‘China+1’ production model for the Apple supply chain from late 2018,” the report said.
Covid-19 put a brake on this over the past two years, but as pandemic concerns eased, “we have seen more companies in the Apple supply chain re-accelerate supply chain restructuring efforts”, the brokerage said in its report.
“Supply chain risks (such as the Covid-19-related lockdown in Shanghai/Shenzhen) are likely to be the primary driving force for these moves over the next two to three years,” it said.
Southeast and South Asian countries (such as India, Vietnam, Thailand) have become preferable locations for Apple food chain vendors to geopolitically diversify away from China, due to their low labor costs, adequate skilled manpower support and attractive policies and government support, according to JP Morgan. Analyst
While India’s booming smartphone market has made India shine, New Delhi’s policy in the electronics sector has inspired major global suppliers to expand in India and encouraged new players to build a base. After tasting success in indigenous smartphone manufacturing, India is moving fast to replicate the success in other parts of the electronics ecosystem, as it makes concerted efforts to reduce its dependence on imports.
The government has unveiled attractive incentives to encourage local manufacturing and exports of telecom and networking equipment as well as IT products, and the Rs 76,000-crore semiconductor scheme to boost local manufacturing of chips and display panels was announced last year.
The Center last week further sweetened the semiconductor package by increasing financial support for new facilities (at technology nodes) to cover 50 per cent of project costs to attract global giants such as Intel and TSMC.
