Apple is facing challenges as it tries to increase production in India, the Financial Times reported on Tuesday, citing people familiar with the iPhone maker’s operations as the US tech giant has shifted some production out of China amid geopolitical tensions with Beijing and China’s tough Covid restrictions hit its supply chain.
At a casings factory in southern India run by a Tata Group supplier, only about half the components from the production line are in good enough shape to be sent to Apple’s assembler Foxconn, the FT reported, citing a source and noting that this 50% ‘yield’ does not meet Apple’s goal for zero defects.
Apple has bet big on India since it began iPhone assembly in the country six years ago through Wistron and later Foxconn, in line with the Indian government’s push for local manufacturing, it said, but the company’s diversification to India has been hit partly by challenges in logistics, tariffs and infrastructure, Reuters said.
Read the full report: Financial Times.
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