Apple moved iPhone 14 production out of China in mere weeks

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Apple is trying to diversify its supply chain away from China on rolling pandemic lockdowns there, as well as geopolitical headwinds between US and China, on one hand, or China and Taiwan, on the other, as that’s where the headquarters of its main assembler Foxconn is located.
According to Jeff Pu, an analyst with Haitong International Securities, “India is now an attractive location for manufacturing as it offers better labor cost structure while Apple is looking to reduce geopolitical risks,” while Aruna Sundararajan, a former government secretary there, adds that “all major companies are now looking at India as part of their ‘China-plus one’ or ‘China-plus two’ strategy.”
When asked for a comment on the successful transition of part of the iPhone 14 production schedule from China to India, Apple simply commented that it is “excited to be manufacturing iPhone 14 in India,” somewhat confirming that the conveyor belt launch has been smooth and earlier than anticipated.
Questions & Answers
Q.What factors are driving Apple to diversify its supply chain away from China?
What factors are driving Apple to diversify its supply chain away from China?
Apple is diversifying due to ongoing pandemic lockdowns in China, and geopolitical tensions between the US and China, as well as between China and Taiwan. These issues are making China a less stable manufacturing hub.
Q.How quickly did Apple manage to start shipping India-produced iPhone 14s compared to initial expectations?
How quickly did Apple manage to start shipping India-produced iPhone 14s compared to initial expectations?
Apple began shipping iPhone 14s made in India mere weeks after Chinese output, which was significantly faster than the two months initially expected. This suggests a very successful and accelerated production diversification.
Q.Why is India considered an attractive location for manufacturing by companies like Apple?
Why is India considered an attractive location for manufacturing by companies like Apple?
India offers a better labour cost structure, which is a key attraction for manufacturers. Also, companies are looking to reduce geopolitical risks by adopting 'China-plus one' or 'China-plus two' strategies.
Q.Has Apple manufactured new iPhone models in India so soon after their release in previous years?
Has Apple manufactured new iPhone models in India so soon after their release in previous years?
No, typically Apple has not started manufacturing new iPhone models in India in the same year they are released. However, 2022 is an exception as the company is urgently diversifying production from China.
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