Apple Inc. plans to begin manufacturing the iPhone 14 in India about two months after the product’s initial release out of China, narrowing the gap between the two countries but not closing it completely as some had anticipated.
According to people familiar with the matter, the company has been working with suppliers in India to increase manufacturing and reduce the time it takes to produce the new iPhone. This is in contrast to the six to nine months that was required for previous launches. Apple, which long made most of its iPhones in China, is seeking alternatives as Xi Jinping’s administration clashes with the US government and imposes lockdowns across the country that have disrupted economic activity.
Analysts such as Ming-Chi Kuo of TF International Securities Group have said they anticipate Apple will ship the next iPhone from both countries at roughly the same time, which would have been a significant benchmark in Apple’s efforts to diversify its supply chain and build redundancy.
Foxconn Technology Group, which is the primary manufacturer for iPhones, examined the process of shipping components from China to assemble the iPhone 14 device at its plant near Chennai in southern India. The people asked not to be identified as the information is confidential. That included looking at ways to maintain Apple’s high standards for confidentiality.
Apple and Foxconn ultimately determined a simultaneous start in India and China isn’t realistic this year, although it remains a long-term goal, said the people. After the September launch, the first iPhone 14s will be made in India by late October or November. One person stated that Diwali, which begins Oct. 24, is an ambitious target.
Apple, Cupertino, California-based Foxconn declined to comment. Foxconn didn’t immediately respond to our requests for comment.
Redington India Ltd., which distributes Apple products in the country, rose as much as 9.5% after Bloomberg’s initial report.
Matching China’s pace of iPhone production would have marked a major milestone for India, which has been touting its attractiveness as an alternative at a time when rolling Covid lockdowns and US sanctions jeopardize China’s position as factory to the world. Assembling iPhones often entails coordination between hundreds of suppliers and meeting Apple’s infamously tight deadlines and quality controls.
Although some people at Apple and Foxconn had hoped for simultaneous production in India this fiscal year, that was never a formal plan. One person said that Apple wanted to concentrate on China first, then work on India production to ensure a smooth launch.
Apple’s partners began making iPhones in India in 2017, the start of a yearslong effort to build manufacturing capabilities in the country. The country of 1.4bn people is a promising consumer market. Modi administration offers financial incentives to tech production under the Make in India program.
Secrecy is one of the challenges in reducing India’s production cap. Apple takes great care to protect product information, and it would be difficult to impose the same strict controls in a second country.
Local executives in India examined entirely cornering off a section of one of Foxconn’s multiple assembly lines, sequestering workers and scrutinizing all possible ways in which the security around the device could be compromised, according to two of the people. One person said that so far, it would be difficult to replicate the strict security controls and strict seclusion of its China facilities.
Apple is also concerned by Indian customs officials. These officials often open packages to check if imported materials match their declarations. Another potential vulnerability for product secrecy, Apple says.
Even if Apple or Foxconn wanted a simultaneous launch of the iPhone, supply-chain problems would have prevented it from happening. China, the main source of many iPhone parts, has experienced successive lockdowns which have made it difficult to ship components through the country.
India’s workforce and factories haven’t easily adopted the highly controlled practices that Apple requires from suppliers. Apple began manufacturing iPhones in India five years ago through contract manufacturers Foxconn Corp., Wistron Corp., and workers have revolted over the pay and quality of the food.
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