This is how the iPhone 14 helps India close the technology gap with China

As planned, Apple will officially manufacture iPhone in India 2 months after the first product is launched. This will operate large-scale iPhone production outside of China, narrowing the technology gap between the two billion-population countries, although it is not as much as some predicted.

According to sources familiar with the matter, Apple has been working with suppliers to increase production capacity in India. For a long time, Apple has always made most of its iPhones in China. However, this will change if factories in India come online.

TF International Securities Group analyst Ming-Chi Kuo said iPhone production in both countries would be an important benchmark for Apple to diversify its supply chain and build contingency efforts. manufacturing.

Foxconn Technology Group, the main manufacturer of the iPhone, studied the process of shipping electronic components from China and assembling its iPhone 14 at a factory outside the southern Indian city of Chennai. This also includes Apple’s requirement to maintain high standards for security. The source declined to be named.

Meanwhile, Apple and Foxconn have both confirmed that it is not feasible to operate both iPhone 14 factories in India and China this year, although that is still a long-term goal. The first iPhones from India could be launched in late October or November after the product goes public in September.

Becoming an iPhone production site marks an important milestone for India, especially as the country has always promoted its appeal as an alternative location in the context of US relations with China not yet. There are signs of improvement and the world’s most populous economy is still pursuing a policy of completely preventing Covid-19.

In fact, iPhone assembly often requires coordination between hundreds of suppliers and meeting Apple’s notoriously tight deadlines and quality control. However, this also contributes to the development of India.

Apple’s partners began manufacturing iPhones in India in 2017, the beginning of a multi-year effort to build production capacity in the country. Besides providing backup for existing operations, the Indian market, with 1.4 billion people, continues to be the fertile ground that Apple wants to explore. Finally, the Government of India also offers many financial incentives for technology production under the Make in India program.

However, the challenge in narrowing India’s production limits is security. Apple always tries to keep all of its new products a secret. Currently, leaders of local factories in India are increasing security checks on assembly lines, to ensure that any information cannot get out. They can learn the model in China.

In addition, Apple is also concerned about Indian Customs officials asking to open shipments to check whether the goods match the declaration. This is another potential loophole to product secrecy that Apple has always championed.

Ultimately, supply chain problems will continue to pose challenges. China is still willing to close many localities when it detects a large number of Covid-19 cases in the community, making the transportation of components difficult.

Refer to Bloomberg