China is the world's factory and most of the products Camel It is manufactured there. However, the American company is trying to reduce its dependence on China and not put all eggs in one basket, especially with the restrictions associated with the Corona pandemic and the American-Chinese crisis, and for this the company decided to manufacture the iPhone 14 in India.


iPhone 14 Made in India

Apple may take a bigger bite of India's manufacturing pie

Apple has been slow when it comes to reducing its dependence on China, but now with the increase in political tensions that can lead to significant risks to foreign companies in China, especially Apple, Apple's eyes turned to India, which is the second largest market in the world after China.

For those who do not know, Apple is assembling iPhone SE devices in India and has begun to expand in India to join other models such as iPhone 12 and recently iPhone 13.

Apple was seeking to start manufacturing and producing iPhone 14 devices in China and India at the same time, but restrictions and disruptions in the supply chain have prevented that.

So Apple decided to move the production of the new iPhone in China and India at one time, to the alternative line, which is an attempt to reduce the production gap between the two markets, which ranged from seven to nine months.

Apple's alternative plan is to manufacture the iPhone 14 in India, about two months after the initial release of the product outside China, and this will narrow the gap between the two countries, but will not close it permanently. This means that the manufacturing process - iPhone 14 (model 6.1 inches only) will begin two months after the traditional launch date in September, specifically in the month of November.


Indian Chinese market

Any attempt to reduce dependence on China does not mean that Apple no longer needs the Chinese giant, almost all Apple products such as the iPhone, iPad, MacBook, etc., were made in China, but the Beijing government imposes strict measures regarding the coronavirus and this affects the chain Supply to many companies, including Apple, and this has weakened the demand by users for the iPhone maker's devices.

Quite the opposite, the Government of India in recent years has implemented stimulus policies to get global companies such as Apple and others to switch to it and the Government of India is trying to take advantage of global trade tensions to attract Western companies to it.


Why can't you count on India

Apple has a tradition that can be called its culture of confidentiality, where it goes to great lengths to maintain the confidentiality of its new products with its partners in the manufacturing and assembly process. While it appears to have mastered this in China, trying to impose similarly strict procedures and controls (such as facility isolation, heightened security and excessive security measures) to prevent any leaks that might occur in another country or second manufacturing base would be extremely difficult.

Moreover, Apple fears that Indian customs officials will open the packages to check what's inside and this could be one of the methods used to leak news about its new products.

Unlike suppliers in China who have a tight grip on employees, Apple's suppliers in India have suffered from riots and demonstrations due to the inhumane working conditions imposed on them by manufacturers there.

There are other problems Apple has to contend with as well, if it really wants India to be its second major manufacturing hub as shipments of components resulting from the shutdowns in China have caused supply chain problems making it impossible to send components to India if those parts are not ready , All this is in the interest of China, which we will not see soon give up its position as the factory of the world.

Finally, India accounted for about 3.1% of Apple's global manufacturing base last year compared to 1.3% in 2020 and it is estimated that that percentage will rise between 5% and 7% this year 2022, however China still has the lion's share of 95.3%.

What do you think of Apple's plan to diversify its production and rely on India, tell us in the comments

Source:

9to5mac

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