As tensions between Washington and Beijing rise, Apple has begun its manufacturing in India.
According to Apple, the company has started to produce its iPhone 14 in India in an attempt to diversify its supply chains away from China.
China's 'zero-Covid' policies have led to lockdowns that have resulted in major disruptions for businesses during the pandemic.
iPhone 14 was released earlier in September.
"The new iPhone 14 line-up introduces groundbreaking technologies and important safety capabilities. We're excited to be manufacturing iPhone 14 in India."Apple Inc.'s statement
Since 2017, Taiwan-based Foxconn that makes the majority of Apple's phones has had certain operations in Tamil Nadu where it still continues to make older versions of the handsets.
However, Apple is now planning to make its latest iPhone 14 in India. With this move, the technology giant will begin to expand its footprint in the country. As of 2021, its market share was about four percent.
Apple has been grappling with the competitively cheaper South Korean and Chinese smartphones that continue to make waves in the Indian smartphone market.
However, the fact that iPhone 14 will be produced in India does not translate into lower cost of the handset in that country due to the high import duties on components and other taxes.
Thus, while Indians might get to see the "Made in India" tag on their new iPhone, they would still have spend a lot for it.
This announcement from Apple signals a win for the Modi administration. Prime Minister Narendra Modi launched the "Make in India" campaign eight years ago which aimed to boost the nation's manufacturing and exports.
As per a report from the BBC, analysts at JP Morgan expect that Apple will move about five percent of iPhone production to India this year.
In 2021, Apple supplier Foxconn invested $1.5 bn in Vietnam, as per the South East Asian country's government.
(With inputs from BBC)
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