Tech giant Apple may ship its iPhone 14 simultaneously from its factories in India and China.
Shipping of the latest iPhones from India is usually a quarter behind the Chinese shipping schedule, with the latest iPhone models coming from China, while Indian manufacturing facilities make the second or third latest generations of iPhones.
According to the analysis of a prominent securities analyst, Ming Chi Kuo, “My latest survey indicates Foxconn’s iPhone production site in India will ship the new 6.1-inch iPhone 14 almost simultaneously with China for the first time in 2H22 (India being one quarter or more behind in the past.”
He further notes that India’s iPhone capacities and shipments still have a considerable gap with China, but it’s an important milestone for Apple in building a non-Chinese iPhone production site.
Overall, it implies that Apple is trying to reduce the geopolitical impacts on supply and sees the Indian market as the next key growth driver.
During the ongoing supply chain issues, most tech companies are seeking a road out of China, with many hardware giants committing to removing 30 per cent of their supply chain from China in the next few years.
In addition to this, India has introduced a series of production-linked incentive schemes, providing subsidies to global and indigenous players who commit to bringing manufacturing to Indian shores and localising their supply chains. As part of the mobile PLI, which is in its second year currently, participants will bring additional investment in electronics manufacturing to the tune of ₹11,000 crore. Foxconn, which manufactures iPhones for Apple, is amongst the beneficiaries of the Centre’s mobile PLI.
Faisal Kawoosa, CEO and Chief Analyst at TechArc, a technology market research firm, noted, “Apple’s manufacturing in India has stabilised enough for the company to start making the latest generation of iPhones in India. This move will help the company fulfil its production target under the mobile PLI.”