The Covid lockdowns in China and the political tensions between the USA and the main country in which iPhones are produced have made Apple prick up their ears: Apple has been in the process of distributing its production to more countries for some time. In particular, India, which is populous like China and has low labor costs internationally, seems to be the focus of interest. But a new media report shows that Apple is allegedly encountering problems in India that did not exist in China.
The Financial Times appeals in its research to four independent sources that are involved with the relocation of further parts of Apple’s production from China to India. The iPhone maker sent product designers and engineers from California and China to India to set up production and train local staff. However, the employees encountered some major stumbling blocks.
Why the shift is necessary
Apple has been producing iPhones in the low price segment in India since 2017. The aim is to have a larger proportion of the flagship devices manufactured in India in the future. Last year, Apple had to deal with massive problems at the Foxconn plant in Zhengzhou, where production of the iPhone 14 Pro and iPhone 14 Pro Max came to a temporary standstill due to riots and Covid measures. The poor availability of the new devices clouded Apple’s Christmas business.
However, India is still a long way from being able to reliably step in for China. The quality of the suppliers is mentioned as an example. A casing factory belonging to the Indian group delivered the casing of the iPhone in such a quality that only every second casing could have been used at all. Apple is used to a zero error rate in China. There is still a very long way to go until then, citing the sources. Apple itself did not comment on the report.
Different work attitude
The housing problems are an example of a different work mentality compared to China. While the Chinese would outdo each other to fulfill Apple’s wishes, there is no sense of urgency in India. According to the report, logistics, customs duties and poor infrastructure also make Apple’s work more difficult.
(mki)
