Apple to start making iPhones in India swaying from the previous world leader in technology production China.
This is a very big move for Apple or even any US company and the effects will be noticed in the rising tensions between Beijing and Washington.
Major disruptions to businesses have been sighted as one of the concerns by Apple, as the zero tolerance Covid policy in China keeps disrupting business.
Currently only the iPhone 14 and a few other devices will be developed in India, so most previous iPhones will continue to be produced in China.
Apple has states, “The new iPhone 14 line-up introduces groundbreaking new technologies and important safety capabilities. We’re excited to be manufacturing iPhone 14 in India,”
Previously Apple has only maintained a small market share in India, with only 4% market presence.
This may also be a contributing factor to moving production there, however it would be amiss for us to ignore the predictions of China overtaking the US in the next few years and whether US politicians had a role to play in the decision.
Although it is very unlikely you will hear Apple admit to it, as then will stick to the messaging around diversifying the supply chain to avoid disruptions.
Last year the Apple supplier, Foxconn invested heavily in Vietnam, so we might expect the supply of iPhones to diversify further in the coming years.