The American giant announced on Tuesday August 23 that it wanted to diversify its production sites. At issue: the financial impact of Chinese health restrictions and a thorny geopolitical context between Washington and Beijing.
Towards “made in India” iPhones? In a press release, published on Tuesday August 23, Apple announces its intention to diversify its production sites to “mitigate geopolitical risks on the efficiency of supply by creating production sites outside of China ” . It is India that should be chosen to host the production of the future iPhone 14. For the major daily Times of India , the Indian state shows that it is closing its technological gap with China.
Growing tensions between the United States and China
If Apple shows its intention to depend less on the Chinese giant, it is first to wipe the losses suffered during the pandemic. Since the epidemic outbreak linked to Covid-19 , China has introduced many health restrictions . Among other things, the suspension of all economic activities and travel restrictions upon the detection of several cases in the same city. According to the American firm, the impact of these measures on production is estimated at at least eight billion euros.
Beyond industrial considerations, Apple’s choices can also be explained by the growing tensions between the United States and China. By order of Beijing, the American company recently had to ask its subcontractors established in Taiwan to label their products intended for China with the mention “made in China”. The autonomous island, of which Beijing claims sovereignty, asks on the contrary that these devices have the mention “made in Taiwan”.
Production will begin in the fall
Foxconn, Apple’s Taiwan-based supplier, has evaluated the assembly of the iPhone 14 at its factory on the outskirts of the city of Chennai in southern India. The production of the first smartphones could be operational at the end of October or next November.
To counterbalance the productive capacity of China, Apple will however have to rely on several countries. Vietnam and Mexico should also be called upon, particularly for the assembly of iPad tablets, Macbooks and iWatch watches.
Apple’s next-generation iPhone 14 series will arrive in a matter of weeks. In the run-up to the launch of the device, several leaks and rumours have been suggesting various developments related to Apple’s premium smartphones. Now, a new report seems to be claiming that Apple will begin the production of its iPhone 14 line-up simultaneously in India and China.
Apple through its partner Foxconn has production lines set up in China, Brazil and India. However, for Apple China has been a key nation when it came to its manufacturing-related operations. This time the tech giant is reportedly planning to kickstart production of its premium smartphones in China and India at the same time.
The development came to light through noted Apple analyst Ming-Chi Kuo who took to his Twitter account to share the news. Kuo has been a reliable source when it comes to developments related to Apple.
In his tweet, Kuo stated that based on his survey, Foxconn’s iPhone production site in India will ship the new 6.1-inch iPhone 14 along with China for the first time. He also said that India was one quarter or more behind in the past.