Apple iPhone 14 India manufacturing gets shot in arm with second supplier

Apple has begun assembling the latest flagship, iPhone 14, in India through a second supplier, Pegatron. With a second contract manufacturer, Apple will double down on the production of iPhone 14 in India, which began in September through Foxconn facilities in Chennai.

The move comes after a few weeks of speculation, suggesting that the iPhone maker is shifting the production facilities from China to other countries to ward off unwanted problems induced by geopolitical tension between China and the US. India has emerged as one of the top markets for production, at least, of the iPhones, where Apple has lately been assembling all its latest iPhone models.

Made-in-India iPhone 14

According to Bloomberg, Pegatron, which has its production facility in Chennai, has begun assembling iPhone 14 units. But the more expensive models, iPhone 14 Pro and iPhone 14 Pro Max are still being manufactured in China, which has been under a strict lockdown because of the re-emergence of Covid. Apple’s key manufacturing hub is in the city of Zhengzhou in China, which is also under lockdown, making it difficult for Apple to continue with production in full swing. This is one of the reasons why Apple is slowly moving its production base out of China.

All three of Apple’s contract manufacturers are now producing the latest iPhone models in India. Over the past few years, they have ramped up their production efforts to meet the demand, falling short of fulfilment through their counterparts in China. While Foxconn has been making iPhones in India for quite some time, other suppliers Wistron and Pegatron began getting orders for the manufacturing of mostly entry-level iPhone models recently.

India over China?

While the Covid Zero policy enforced by the China government has made it difficult for tech companies to meet the production demands, India has emerged as a top substitute, boosted by Prime Minister Narendra Modi’s Make in India initiative, which offers incentives to foreign firms for manufacturing in India.

Apple began manufacturing iPhones in India in 2017 through the Wistron facility, but over the last few years, the efforts have magnified as the demand for iPhones has grown tremendously in the country. Despite that, iPhone has a very small share of India’s smartphone market, led by the likes of Xiaomi and Realme. Apple has tweaked its business strategies to offer cheaper iPhones to lure buyers in countries such as India. Over and above that, third-party shopping websites run various sales to give heavy discounts on new iPhone models, driving their growth in the country.

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