iPhone Launch Could Be Delayed: iPhone 14 Could Be Made In India To Reduce Dependency On China
China has started strictly enforcing a rule that seeks for every Taiwanese-made part to be labelled appropriately.
iPhone shipments could get potentially delayed resulting in the September launch event getting postponed as reports reveal that China has started strictly enforcing a rule that seeks for every Taiwanese-made part to be labelled appropriately.
Reuters
Under the aforementioned policy, Chinese officials also have the authority to reject shipments. The new action comes after US House of Representatives Speaker Nancy Pelosi who made a congressional delegation visit to Taiwan.
Why this makes things difficult for Apple
To the unaware, Apple outsources the chip manufacturing to Taiwan Semiconductor Manufacturing Company Limited (TSMC) which is then shipped to China where the assembly takes place.
Recently, Apple informed the manufacturers that it had started to enforce a long-standing rule under which Taiwanese-made parts and components must be labelled as made in either Taiwan, China or China Taipei.
As per a Nikkei Asia report, Made in Taiwan violates the rule and the shipments could be checked and held by Chinese customs along with a fine of up to CNY 4,000 or around Rs 46,000. The shipment could also be rejected entirely, delaying the shipment of iPhones further.
The report revealed that last week, one of the shipments from Taiwan to one of iPhone¡¯s largest assemblers -- Pegatron -- were held for review to see if the import declaration was made as per the rules in China. The report highlighted that China wasn¡¯t happy with the visit of the US officials to Taiwan.
AppleInsider
iPhone 14 could be made in India simultaneously
Another report by analyst Ming-Chi Kuo claimed that the iPhone14 could be manufactured in India simultaneously with China since Apple wants to reduce its dependence on the Chinese supply chain due to the rising geopolitical issues.
In the short term, India's iPhone capacities/shipments still have a considerable gap with China, but it's an important milestone for Apple in building a non-Chinese iPhone production site.
¡ª ¹ùÃ÷åZ (Ming-Chi Kuo) (@mingchikuo) August 5, 2022
If this actually happens, this will be the first time Indian manufacturing units will push the phone right from the launch. With Apple already manufacturing iPhone 12 and 13 series in India, it's like Apple was preparing the Indian manufacturing units for this move.
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