Amid a COVID-19 outbreak at the largest iPhone factory in China, a new report shows Apple is trying to diversify its supply chain and rely less on the country as another manufacturer started producing the iPhone 14 series in India. Here’s what you need to know.
According to Bloomberg, Pegatron Corp has begun assembling Apple’s iPhone 14 in India. Apart from this, since September, Foxconn has been producing the latest iPhones in the country, although the majority of iPhones are still made in China.
Pegatron’s factory in India currently employs more than 7,000 workers. Earlier this year, it began producing iPhone 12 handsets. According to the publication, the manufacturer usually gets orders for Apple’s entry-level models.
Cupertino, California-based Apple is seeking alternative production hubs amid a trade war between Washington and Beijing and tight enforcement of Xi Jinping’s Covid Zero policy in China. At the same time, New Delhi is positioning India as a competitor to China’s manufacturing prowess. Local Apple reseller Redington has surged in value since Foxconn’s coronavirus issues emerged over the past week.
Besides Bloomberg’s report, analyst Ming-Chi Kuo says Foxconn is also planning to expand iPhone production capacity in India after the Zhengzhou iPhone plant’s COVID-19 lockdown.
“As a result, iPhones made by Foxconn in India will grow by at least 150% YoY in 2023, and the medium/long-term gfoal is to ship 40-45% of iPhones from India (vs. the current 204%), meaning Foxconn’s iPhone production capacity in India will increase rapidly in the next few years.
Currently, Zhengzhou’s most prominent iPhone factory produces up to 70% of all iPhones shipped globally. With this significant change, not only will Apple rely less on China, but the company will be able to sell more iPhones as soon as they are announced.
BGR will keep reporting Apple’s plans to rely on less in China and improve possible supply chain issues.
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