Apple has initiated the production of the iPhone 15 in the Indian state of Tamil Nadu as part of its endeavor to narrow the gap between its operations in India and its main manufacturing base in China.
A factory operated by Foxconn in the Indian state is gearing up to deliver the latest devices, weeks after shipments commenced from Chinese factories, the company seeks to swiftly increase the quantity of new iPhone units coming from India.
The California-based company is undertaking a multi-year project to diversify its manufacturing away from China, mitigating supply chain risks for its key products, given the unpredictability of trade tensions between Washington and Beijing.
Under the leadership of Prime Minister Narendra Modi, India has sought to foster stronger ties with the United States and establish itself as an industrial hub.
Apple had relied on India for a minor portion of its pre-iPhone 14 assembly, as the country lagged behind China by six to nine months in comparison to production processes, in the past year, India significantly reduced this gap with China, with Apple manufacturing 7% of its smartphones in the country.
This year, the company aims to nearly achieve parity in shipping timing between India and China, although suppliers are not yet certain about their ability to accomplish this.
The extent of Indian production for the iPhone 15 depends heavily on the availability of ready-made imported components and the streamlined scaling of production lines in Foxconn’s factory.
The upcoming iPhone model, likely to be announced on September 12th, is set to be the biggest update to the phone in three years.
Key upgrades include an updated camera system, with Pro models sporting an improved A16 processor built on 3-nanometer manufacturing technology, the new phone family is highly crucial for revitalizing flagging sales.
Earlier this month, Apple announced its third consecutive quarter of sales decline, influenced by weak consumer demand in major markets like the United States, China, and Europe.
Other Apple suppliers in India, Pegatron and Wistron, are also set to assemble iPhone 15 units in the near future.
Apple’s expansion in India has been propelled by its Taiwanese suppliers, capitalizing on some of the financial incentives offered by Modi’s government to bring in higher-quality manufacturing.
This has enabled Apple to triple its iPhone production to over $7 billion in India in the fiscal year ending in March.
Having inaugurated its first retail store in the country in April, Apple now views the rapidly growing Indian market as a long-term retail and manufacturing opportunity.
Sales of iPhones in India grew in the quarter ending in June. Tim Cook, Apple’s CEO, stated after his meeting with Modi during his April visit to India, “Apple is committed to growth and investment across the country.”
