Apple relied on China and Vietnam, mainly, for the production of its phones and other products. Due to certain reasons, Apple is switching to iPhone manufacturing in India to cope with production delays.
Reason For Switching iPhone Manufacturing To India
A news report from Bloomberg stated that clashes between China with Washington and lockdown in several major cities caused problems in manufacturing in China. So, the company is looking forward to starting its production in India. There had been several manufacturing lags in the previous six to nine months. The decision to switch to India could overcome this situation in the favour of Apple.
Apple has chosen India as a manufacturing hub for phones because of its potential in the market. India is the second largest smartphone market in the world. So, the production could increase the possibility of cost reduction and smooth flow of units produced. We can also expect that Apple will also start iPad production in India as well.
Next iPhone Launch
According to a report, Foxconn, the biggest supplier of the iPhone, has done its homework on shifting its units in India related to the shipping and further documentation for iPhone 14. The manufacturing will occur in Chennai.
Apple will probably complete some of its Apple iPhone 14 manufacturing in India in October or November. However, the usual launch of a new iPhone comes in September. So, we can expect some delay in the launch because of its late production in October or November. So, don’t expect to get your hands on a new iPhone as soon as September.
iPhone production usually occurred in Vietnam and China and the company also preferred these areas for production. However, India and Mexico are the new favourites for Apple because of the high potential for manufacturing. It will help the company to enjoy a lower tax burden and further subsidies from the government of India. Also, the labour supply is favourable for the business at a low cost.
Along with iPhone manufacturing in India, Apple is also planning to start manufacturing of Apple Watch and Macbooks in Vietnam for the first time. A renowned analyst Ming-Chi Kuo reported that the company is working on mass production of M2-powered 14″ and 16″ Macbooks in the last quarter of 2022.