Plans of Apple Inc. to begin manufacturing Phone 14 in India two months after the product release from the China facility. This move narrows the gap between the two countries but has not removed it completely as some had expected.
Apple is coordinating with suppliers to ramp up India’s manufacturing infrastructure. This will shorten the production lag of new iPhone models, which varies between six to nine months from its earlier launches.
Apple has been so far making its iPhones from China primarily but is now looking at alternative manufacturing hubs. Recent clashes between the US government and Xi Jinping administration on imposed lockdowns disrupted manufacturing activities.
Analyst Ming-Chi Kou at TF International Securities anticipates the next iPhone from Apple will be shipped around the same time from both China and India. This will be a significant benchmark for Apple’s effort to diversify its supply chain and build backups.
Foxconn technology, the leading manufacturer of iPhones, has worked out the process of shipping components from China to the assembling factory of iPhones on the outskirts of Chennai, India. The information is confidential, according to people confirming Apple’s high standards for maintaining confidentiality.
Foxconn and apple have realized that simultaneous shipping from China and India is not feasible this year, thoub it remains a long-term objective. The first iPhone from India is expected to be completed by late October or early November after the initial release of the iPhone 14 in September. According to a person, the Diwali festival on Oct 24 targets the release date.
The spokesperson of Apple declined to comment, while Foxconn did not respond immediately.
After the initial report from Bloomberg News, the shares of Redington India Ltd rose by around 9.5%. Redington distributes apple products in India.
Major Milestone
It will be a significant milestone for India if it matches China’s iPhone production speed. India has been marketing itself as an attractive alternative after Covid lockdowns, and US sanctions have jeopardized China’s factory position. Assembling iPhones would entail coordinating with hundreds of vendors and meeting Apple’s stringent quality controls and deadlines.
Apple’s partners have been making iPhones in India since 2017, resulting in a year-long effort to build manufacturing capacity in India. Besides offering backup to Apple’s existing operations, India offers a promising consumer market with its 1.4 billion population. The government has also offered financial incentives for tech manufacturing under the Make in India Program.
Maintaining secrecy in Indian production will be a challenge. Apple is extremely cautious in keeping its product details confidential, and implementing rigorous controls in another country will be difficult.
Local executives are working on secluding a section of Foxconn’s assembly line, isolating workers, and scrutinizing all possible ways security around the device can be compromised. Replicating stringent controls and seclusions like the China factory would be difficult to replicate in India.
Apple is also concerned about Indian customs officials who are used to opening imported material packings to check if the declaration matches the product, and this is a potential vulnerability for maintaining product secrecy.
