The world is going through a troubled period in the relations between the superpowers. The war in Ukraine caused a greater division between Europe and Russia, between the USA and China. It was clearly perceived that these powers cannot be economically dependent on only one country or market. As such, Apple hints that it won’t be tied to factories in China, that India is now a top-tier option for making the iPhone 14.
According to information provided by the analyst Ming-Chi Kuofor the first time, part of the new range of Apple’s new iPhone will be manufactured in India “almost simultaneously” with usual suppliers in China.
iPhone 14 will also be manufactured in India
Shortly after reporting that Apple is diversifying its production with more companies and in more countries, Kuo now says the first sign of this new policy will be with the entry-level iPhone 14.
In many tweets, Kuo notes that in the short term, "India's iPhone manufacturing and shipping capabilities still have a considerable gap with China." But he notes that "it is an important milestone for Apple in building a non-Chinese iPhone production site."
My latest survey indicates Foxconn's iPhone production site in India will ship the new 6.1" iPhone 14 almost simultaneously with China for the first time in 2H22 (India being one quarter or more behind in the past).
— Ming-Chi Kuo (@mingchikuo) August 5, 2022
This new Apple policy is a clear message. The Cupertino company is striving to reduce geopolitical impacts on supply. As the analyst notes, the Indian market is seen as the next key growth engine.
This information is not published by Apple, but it is a clear indication when there is a big change in the supply chain. The change in the destination of the components, as well as moves with companies outside China to produce iPhone components, account for Apple's strategic move.
Ming-Chi Kuo also repeatedly refers to India in the production of the "6.1-inch iPhone 14". That's because Apple is expected to add a second model to non-Pro iPhones, a 6.7-inch "iPhone Max". Therefore, when opening a new product, Apple is already starting to stabilize that production in manufacturing units moved from China.
In short, Apple will be placing part of the manufacture of its devices in India, and in the future it may transfer a good part of China to a country that has been "more neutral" in these current geopolitical conflicts.
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