Pegatron, a Taiwanese contract manufacturer for Apple, is most likely to team up with Foxconn, another Apple supplier, to start producing the newest iPhone 14 models in India.
Although the intention to move manufacturing from China to India is not public, the Taiwanese company Pegatron has a factory in the Indian state of Tamil Nadu, according to a Bloomberg article. It started producing iPhone 12 phones earlier this year and is often in charge of putting together Apple’s entry-level versions.
Apple Wary Of China’s Intention
The action was also taken soon after Indian retailers complained of a lack of the iPhone 14 Pro and Pro Max, and the company promised that India’s manufacturer will help to fill the gap.
By the end of 2022, the Cupertino, California-based tech giant hopes to shift 5% of the world’s manufacturing demand to India, where it would produce iPhones valued at INR 47,000 Cr in FY23.
It already uses the Foxconn facility in India to produce the most recent iPhone 14 models, benefiting from the country’s production-linked incentive (PLI) program. The PLI program seeks to expand domestic manufacturing by turning India into a center for major electronics manufacturers.
The iPhones made by the US-based company’s contract manufacturers, Foxconn, Wistron, and Pegatron, are currently assembled in India.
Accordingly, a Nikkei article previously said that Apple had urged its suppliers to relocate some production of AirPods and Beats to India in line with the plans and India’s provision of an industry-friendly policy.
Foxconn and Luxshare Precision Industry have started investigating into producing Apple’s acoustic gadgets in the nation in response.
Analysts have viewed the 2x increase as unlikely despite the shift to India. According to market experts, one of the trends that continues to work against Indian manufacturers is the fact that iPhone components are still made in China, sent to India, and assembled there, creating a cost issue.
Therefore, according to research organizations, it will still take Apple about ten years to shift just 10% of its production capacity from China.