In an effort to move some production away from China, Apple announced on Monday that it is assembling its flagship iPhone 14 in India.

The new iPhone 14 series features game-changing new technologies as well as crucial safety features. We’re thrilled to be producing the iPhone 14 in India,” said Apple in a statement.

The iPhones are being produced in Foxconn’s Sriperumbudur factory, which is located outside of Chennai. Foxconn is Apple’s primary iPhone assembler.

Since 2017, the Cupertino company has been producing iPhones in India, though often older models. In advance of the device’s release, Apple is this time producing the iPhone 14 in India for the first time. This month, Apple unveiled the iPhone 14.

Apple will sell phones made in India both domestically and internationally. In the next days, customers in India will start receiving the locally made gadgets.

In a report published this month, analysts at JP Morgan predicted that by the end of 2022, Apple will shift 5% of its worldwide manufacturing of the iPhone 14 to India. By 2025, 25% of all iPhones will be produced by Apple in India, according to JP Morgan.

Apple’s emphasis on manufacturing in India demonstrates the tech giant’s intention to diversify production away from China and grow its client base in India, which is now a minor market for the business.

Apple continues to produce the majority of its iPhones primarily in China.

Even while the majority of the world works to open its communities, Beijing has continued to use a strategy of lockdowns to quell Covid resurgences. Production has been halted at facilities in China due to lockdowns caused by the zero Covid policy, and some possible weak links in Apple’s supply chain have been revealed.

India has tried to increase domestic electronic manufacturing through incentives.

In the meantime, Apple has been attempting to boost sales in India, the second-largest smartphone market in the world. According to Counterpoint Research, Apple only held a 3.8% market share in India last year while cheaper rivals like Samsung and China’s Xiaomi continued to rule.

In the second quarter of this year, Apple, which sells phones costing more than 45,000 Indian rupees ($552), was the most popular brand. That’s due to the successful sales of its iPhone 13 models from the prior generation.

The entry-level Apple iPhone 14 costs 79,900 rupees ($980).

“Apple is gaining ground in India. According to Tarun Pathak, research director at Counterpoint Research, India is one of the 20+ nations around the world where the premiumization trend has only recently begun.