Apple narrows China-India iPhone release gap in push to diversify supply chain, build redundancy

Shipping the company’s flagship handsets from both countries at roughly the same time remains a long-term goal, people familiar with the matter said

India has been touting its attractiveness as an alternative as rolling lockdowns and US sanctions jeopardise China’s position as factory to the world

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Published: 2:02pm, 23 Aug 2022Updated: 5:53pm, 4 Oct 2022

Apple 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.

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 Kuo Ming-Chi 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 is the primary manufacturer of Apple’s iPhones. Photo: Bloomberg

Foxconn Technology Group, the primary manufacturer of iPhones, studied the process of shipping components from China and assembling the iPhone 14 device at its plant outside the southern Indian city of Chennai, said the people, who asked not to be identified because the efforts are 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. The first iPhone 14s from India are likely to be finished in late October or November, following the initial September release, they said. An ambitious target would be the Diwali festival that begins October 24, one person said.

A spokesman for Cupertino, California-based Apple declined to comment. Foxconn did not immediately respond to requests for comment.

Redington India Ltd., which distributes Apple products in the country, rose as much as 9.5 per cent after Bloomberg’s initial report.