Apple’s iPhone 15 Begins Production in India to Narrow China Gap
The forthcoming iPhone 15 from Apple Inc. is now in production in Tamil Nadu, as part of the company’s strategic move to reduce its reliance on China for manufacturing.
A plant operated by Foxconn Technology Group in Sriperumbudur is gearing up to deliver the latest iPhones shortly after their debut in Chinese factories. This initiative reflects Apple’s determination to boost the output of new iPhones from India and decrease the gap between its India operations and its primary manufacturing base in China.
This push for diversification away from China aligns with Apple’s long-term strategy to mitigate supply chain risks, particularly amid uncertain trade dynamics between the United States and China. India, under Prime Minister Narendra Modi’s leadership, is working towards strengthening its ties with the US and positioning itself as a key manufacturing hub.
In the past, Apple’s iPhone assembly in India was only a fraction of its China output, with a considerable lag of six to nine months. However, this gap was significantly reduced last year, and as of March, Apple managed to produce 7% of its iPhones in India. The aim for this year is to further narrow the timing disparity in shipments between India and China, although suppliers remain cautious about achieving this goal, citing anonymity due to the confidential nature of the information.
The extent of iPhone 15 production in India will hinge on the availability of components, most of which are imported, and the efficient scaling up of production lines at the Foxconn facility near Chennai.
Anticipated to be unveiled on September 12, the new iPhone is poised to be the most substantial update to the device in three years. It boasts significant enhancements to the camera system across the lineup, with the Pro models featuring an upgraded 3-nanometer processor. This new iPhone lineup plays a crucial role in revitalizing Apple’s sales, which have been waning. The company recently reported its third consecutive quarter of declining sales, attributing it to subdued consumer demand in major markets like the US, China, and Europe.
Other key Apple suppliers in India, including Pegatron Corp. and a Wistron Corp. factory being acquired by the Tata Group, are also set to commence assembly of the iPhone 15.
While Apple declined to comment on the matter, it has steadily expanded its presence in India through its Taiwanese suppliers, leveraging financial incentives from the Modi government to boost high-end manufacturing. The India market is becoming increasingly vital for Apple, both as a retail opportunity and a strategic production hub for its devices in the long run. In the quarter ending in June, iPhone sales in India experienced double-digit growth, though precise figures were not disclosed.
