(Bloomberg) — Pegatron Corp., Apple Inc.’s Taiwanese contract manufacturer, has begun assembling its latest model iPhone 14 in India.
Bloomberg’s most read articles
The move would make Pegatron the second Apple supplier to produce the iPhone 14 in the country, people familiar with the matter told Bloomberg News.
It happened when Apple’s main iPhone Pro manufacturing hub in Zhengzhou, China, operated by Foxconn Technology Group, came under a sudden Covid-19 lockdown by the authorities. While spotlighting its deep reliance on China, the expansion in India was in line with diversification plans already in place, the people said.
Representatives for Apple and Pegatron declined to comment.
Foxconn started manufacturing the iPhone 14 in India in September. This comes just a few weeks after the global launch and roughly equates to the start of production in China, where the majority of iPhones are still made. Apple’s chief his production partner still has exclusive rights to his iPhone Pro models that he assembles in Zhengzhou.
The Pegatron factory in the southern Indian state of Tamil Nadu, which employs more than 7,000 people as of the end of September, also began manufacturing iPhone 12 handsets earlier this year. Pegatron basically receives orders for Apple’s entry-level models.
Cupertino, Calif.-based Apple is looking for alternative production hubs amid the trade war between Washington and Beijing and Xi Jinping’s strict enforcement of Covid-zero policies in China. is positioned as a competitor for China’s manufacturing capabilities. The value of his Redington, his local Apple reseller, has skyrocketed since Foxconn’s coronavirus problems hit last week.
Ivan Lam, a senior analyst at Counterpoint, said most of the iPhone’s components are still made in China and must be shipped to where the devices are assembled.
Read more: Apple iPhone exports from India double in favor of Modi plans
Foxconn, Pegatron and Wistron, Apple’s biggest suppliers in Taiwan, are ramping up iPhone assembly in India, boosted by Prime Minister Narendra Modi’s financial incentive program. This has also helped increase iPhone exports from South Asian countries.
Apple first began assembling iPhones in India through Wistron in 2017 after years of efforts to build manufacturing capacity in the country. India is currently a small consumer market for Apple, but the country of 1.4 billion people offers huge room for growth in the United States as incomes and internet connectivity grow.
–With help from Mark Gurman.
(Updates with Pegatron response.)
Bloomberg Businessweek’s Most Read Articles
©2022 Bloomberg LP