Beijing: Pegatron, a Taiwanese-based Apple contract manufacturer, has started putting together the organization's latest iPhone 14 model in India.

People familiar with the situation declined to be identified because the manufacturing strategy is private, Pegatron would now be the second Apple supplier to manufacture the iPhone 14 in the country as a result of the move.

This comes at a time when authorities suddenly imposed a Covid-19 lockdown on Apple's flagship iPhone Pro manufacturing facility in the Chinese city of Zhengzhou, which is operated by Foxconn Technology Group.

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People said that though India's expansion was in line with already established diversification plans, the situation brought to light Apple's significant dependence on China. Pegatron did not respond to a request for comment, and Apple declined to do any.

Just a few weeks after its public debut, Foxconn started production of the iPhone 14 in India. This was close to the start of production in China, where most of the iPhones are still made. The iPhone Pro models, put together in Zhengzhou by Apple's main manufacturing partner, remain exclusive.

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The Pegatron plant in Tamil Nadu, India, which had more than 7,000 employees at the end of September, also began production of the iPhone 12 phone earlier this year. For Apple's entry-level models, the Pegatron usually gets orders.

Apple, based in Cupertino, Calif., is exploring alternative production centers amid a trade dispute between Washington and Beijing and strict implementation of Xi Jinping's zero-Covid policy in China.

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Also, New Delhi positions India as a rival to China's strength in manufacturing. According to Counterpoint senior analyst Evan Lam, the fact that most iPhone components are still manufactured in China and must be shipped to locations where devices are assembled is a significant barrier to moving more production overseas. .

Apple's three largest Taiwanese suppliers Foxconn, Pegatron and Wistron have increased iPhone assembly in India thanks to Prime Minister Narendra Modi's financial incentive program. Additionally, it has contributed to the increase in iPhone exports from the South Asian nation.

After years of work developing manufacturing capabilities in the nation, in 2017, Apple began assembling iPhones in India through Wistron. And while India, with a population of 1.4 billion, is currently a small consumer market for Apple, it offers the US giant significant room for expansion as income and Internet connectivity increase.