Apple Inc’s Taiwanese contract manufacturer Pegatron Corp has begun assembling the new iPhone 14 in India. The move coincides with the Foxconn iPhone plant in Zhengzhou China being placed under an abrupt Covid-19 lockdown by local authorities on Wednesday.

The Pegatron factory in India's southern Tamil Nadu state, which employed more than 7,000 as of the end of September, also began making iPhone 12 handsets earlier this year. Pegatron generally gets orders for Apple's entry-level models.

One big hurdle for more production shifting out of China is that the majority of iPhone components are still built there and have to be shipped to wherever devices are assembled, Counterpoint senior analyst Ivan Lam said. For more, read the full Bloomberg report.