After building up launch stock in China, Apple plans to begin assembling the iPhone 14 in India some two months after the product’s launch date, narrowing the gap between the two countries in a effort to diversify production that is heavily dependent on the Chinese Communist Party-controlled country.
The company has been working with suppliers to ramp up manufacturing in India and shorten the lag in production of the new iPhone from the typical six to nine months for previous launches, according to people familiar with the matter. 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.
MacDailyNews Take: Diversification, especially away from China, reduces risk and benefits Apple.
It’s smart for both Apple and Foxconn to diversify assembly outside of China. There’s no sense having all of your eggs in one basket. – MacDailyNews, April 2, 2019
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