In an effort to further narrow the gap between its India operations and main manufacturing base in China, Apple Inc. is commencing its next-generation iPhone 15 production in Tamil Nadu.
Apple Supplier Foxconn Commencing iPhone 15 Production In Country
Sources said that a Foxconn Technology Group plant in Sriperumbudur is preparing to deliver the newest devices only weeks after they start shipping from factories in China, as the company seeks to swiftly increase the volume of new iPhones coming from India.
It appears that the iPhone maker is on a multiyear project to diversify its manufacturing away from China.
This way de-risking the supply chain for its most important products as tensions between Washington and Beijing make trade less predictable.
In the meantime, under Prime Minister Narendra Modi, India has sought to build closer ties to the US and make itself a manufacturing hub.
As we know that before the iPhone 14, Apple had only a sliver of its iPhone assembly in India, which lagged China output by six to nine months.
But, the delay was drastically reduced last year when Apple produced 7% of its iPhones in India at the end of March.
This year, the Cupertino, California-based firm’s goal is to move closer to parity on shipment timing from India and China.
Although the suppliers are yet not certain they will achieve it, the sources said.
When it comes to the scale of India production for the iPhone 15, it will depend on the ready availability of components, which are largely imported, and also the smooth ramp-up of production lines at the Foxconn factory outside Chennai.
So far, this new iPhone which is likely to be announced on Sept. 12, promises to be the biggest update to the device in three years.
The device will include major upgrades to the camera system across the range, and the Pro models will gain an improved 3-nanometer A16 processor.
It also holds a significance as this new family of handsets is critical to reviving flagging sales.
Fighting Declining Sales
To the unawares, the iPhone maker this month reported its third straight quarter of declining sales.
The sales are weighed down by tepid consumer demand in key markets like the US, China and Europe.
Besides this the other Apple suppliers in India including Pegatron Corp. and a Wistron Corp. factory that is being acquired by the Tata Group — will also soon assemble the iPhone 15, said the sources.
So far, Apple has steadily expanded in India through its Taiwanese suppliers.
The firm has benefited from some of the Modi administration’s financial incentives to bring in more high-end manufacturing.
Further, it has helped Apple triple iPhone production to more than $7 billion in India in the fiscal year that ended in March, Bloomberg News reported previously.
It appears that the iPhone maker which opened its first retail stores in the country in April, now views the fast-growing India market as both a retail opportunity and an important production base for its gadgets in the longer term.
Although Apple hasn’t disclosed precise numbers, its sales in India grew double-digits to a new high, during the quarter through June.
During his India trip in April, Chief Executive Officer Tim Cook said that Apple is “committed to growing and investing across the country,” after meeting with Modi.
