India and other countries such as Mexico and Vietnam are increasingly turning important to contract manufacturers supplying to American brands amid Covid-related lockdowns in China and simmering tensions between Washington and Beijing. The report says that decision comes in the backdrop of relentless controls and spot lockdowns across China, where the majority of Apple’s iPhones are manufactured. These lockdowns have not only disrupted supply chains but also taken a heavy psychological and financial toll on residents and companies. Earlier this week, China ordered an industrial park in the city of Zhengzhou that houses an iPhone factory belonging to Foxconn to enter a seven-day lockdown.
Apple looks to India for manufacturing
The tech giant has been shifting some areas of iPhone production from China to other markets, including India, where it started manufacturing iPhone 13 earlier this year, and is also planning to assemble iPad tablets. The company announced last week its plans to manufacture the latest iPhone 14 in India. All of Apple’s biggest Taiwanese suppliers, Foxconn, Pegatron and Wistron Corp have ramped up iPhone assembly in India.
Last month, there was a report that Apple is asking its suppliers to move some AirPods and Beats headphone production to India for the first time. Foxconn is preparing to make Beats headphones in India and hopes to eventually produce AirPods in the country as well, the report said, citing sources. Luxshare Precision Industry, a Chinese supplier to the iPhone maker, and its units also plan to help Apple make AirPods in India, according to a report in Nikkei, citing sources.
