Apple on Monday said it is its flagship iPhone 14 in India as the U.S. technology giant looks to shift some production away from China.

Apple announced on Monday that it will assemble it’s newly launched iPhone lineup in India as the U.S tech giant seeks to shift some production away from China.

“The new iPhone 14 lineup introduces groundbreaking new technologies and important safety capabilities. We’re excited to be manufacturing iPhone 14 in India,” Apple said in a statement.

According to reports from TechCrunch, Apple’s main iPhone assembler, Foxconn, is manufacturing the devices at its Sriperumbudur factory near Chennai.

Since 2017, Apple has been producing iPhones, but these were older models. With the iPhone 14 lineup, this is the first time an iPhone model will be manufactured in India immediately after its release, implying a significant shift in the American technology giant’s future manufacturing.

Apple will soon sell India-produced iPhone 14 lineup locally and export it to other markets. Indian Customers will get locally produced iPhones.

According to JPMorgan analysts, Apple will move 5% of its global production to India by late 2022, and Apple could potentially produce 25% of all iPhones in India by 2025, JPMorgan said.

Apple’s emphasis on assembling iPhones in India indicates the company’s desire to expand production away from India and boost customers in India, which is currently a small market share for the tech giant. With this move, Apple intends to increase its customer base in India as locally produced iPhones will be more affordable in the country. According to TechCrunch, the standard iPhone 14 currently costs 79,900 rupees (about $980) in India, as opposed to the $799 price tag in the US.

Samsung, Apple’s rival, has already set up one of its largest factories in the country in 2018. Xiaomi, which currently leads the market, as well as its competitors Oppo, Vivo, and OnePlus, all locally assemble a number of their handsets in the country.

India has attracted investment from all these tech giants by offering lucrative subsidies, as the country wants to make India a manufacturing hub.

Reportedly, Google is also considering moving its Pixel smartphones to India or china.