Apple has started manufacturing one of its newest phones in India. According to Reuters, the technology firm has started iPhone 13 production in India. Apple did not say at which factory production began, but a Reuters source claimed that a Foxconn factory in the Tamil Nadu town of Sriperumbudur will assemble the devices.
This news makes the iPhone 13 the fourth iPhone model Apple has produced in India. The company started production in the country with the original iPhone SE in 2017.
We cannot say that this decision was surprising. The Indian government has used several tools to encourage companies to manufacture locally, including investment rules that require local sourcing for 30 percent of parts. Increasing import taxes also play a role in these decisions. If Apple doesn’t produce the iPhone 13 locally, these phones could be very expensive compared to competing phones manufactured within India.
Also, Apple is moving its production away from China to avoid trade disputes and other problems that can come with being heavily dependent on one country. Indian production could help Apple cover temporary cuts at its Chinese factories. Although Nikkei claims that these plans have been delayed due to the epidemic, Apple is reportedly preparing to move AirPod and MacBook production to Vietnam.
This expansion is happening despite labor problems in India. In late 2020, an uprising broke out at Wistron’s iPhone factory in the Narasapura industrial area after workers complained of unpaid wages, excessive hours and harsh working conditions. Apple put Wistron on probation until the contractor resolved the issues, but we can safely say that this crisis will not help Apple’s production expansion in the country.
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