The subcontinent is soon to become the most important manufacturing location alongside China. But according to a report, Apple fears leaks, which is causing delays.
Apple has been trying for several years to diversify its supply chain and stop manufacturing primarily in China. This was initially in response to the emerging trade war between the US and China under the Trump administration, and finally because of the chip crisis and the Chinese government’s extremely rigid anti-corona measures.
Vietnam, Brazil – and especially India
In addition to Vietnam and occasionally Brazil, India in particular is said to play an important role – it could become the second largest Apple production site after the Middle Kingdom. However, this also comes with problems. Not only are there a lack of suppliers that form a close-knit supply chain in China: According to a report, Apple also fears that unknown hardware will be kept secret if devices start production in China and on the subcontinent at the same time.
Apple currently has to wait between six and nine months before a new product can be manufactured in India after production has started in China. Apple wants to shorten that significantly. Foxconn, the Taiwanese company that is Apple’s largest manufacturer and is also set to set up factories in India, is encountering unexpected problems. It is difficult to comply with Apple’s “high standards of confidentiality”. In other words, the iPhone manufacturer is afraid that there could be early leaks from the new Indian supply chain.
Like it in one Report from the financial news agency Bloomberg further means that Apple and Foxconn finally agreed that a simultaneous start of production in India and China was “not realistic”. This applies to the iPhone 14 at least this year. However, equal production in China and India remains the partners’ “long-term goal”.
Simultaneous production start “not realistic”
Foxconn and Apple had previously considered extreme measures to protect production from leaks. For example, one area of ​​the assembly line was to be completely separated from the rest of the factory, affected employees were to be separated and safety improved throughout production. According to informed circles, Apple and Foxconn want to rule out “all possible ways” that could lead to leaks. However, it is hardly possible to replicate the drastic security controls from China in India.
This includes, for example, that all employees live on the premises and there is virtually no contact with the outside world while the still secret products are being manufactured. Apple is also said to have been afraid of Indian customs officials who could open packages with materials for the devices and thus disrupt Apple’s secrecy.
Actually are only this week Leaks from India about the iPhone 14 surfaced. The regulatory authority Bureau of Indian Standards (BIS) has published previously unknown iPhone device numbers in its database.