In a move indicative of Apple Inc.’s drive to diversify its manufacturing base beyond China, the tech giant has initiated the production of its next-generation iPhone 15 in Tamil Nadu, India. This development is pivotal for Apple as it marks a significant step in narrowing the manufacturing disparity between its India operations and its primary production base in China.
A Foxconn Technology Group facility situated in Sriperumbudur is gearing up to dispatch the latest iPhones. This action is slated to commence merely weeks after the devices start their shipping journey from Chinese factories. Insiders have shed light on Apple’s intent to rapidly augment the number of iPhones originating from India.
Apple’s efforts align with the broader objective of mitigating the reliance on China for manufacturing, particularly as trade becomes more unpredictable due to the ongoing tensions between Washington and Beijing. Meanwhile, India, under the leadership of Prime Minister Narendra Modi, has actively pursued a more robust alliance with the US, envisioning itself as a central manufacturing hub. In the past, Apple’s iPhone assembly in India was significantly slower compared to China, often lagging by six to nine months. However, this lag was sharply curtailed last year, with Apple producing approximately 7% of its iPhones in India by March’s conclusion. Apple’s ambition for this year is to equate shipment timings between the two countries, although it remains to be seen if this target will be fully realised. The production volume of the iPhone 15 in India is contingent upon a seamless supply of components, which are predominantly imported, along with an efficient escalation of the production lines at the Foxconn facility near Chennai. The upcoming iPhone, projected to be unveiled on September 12, is anticipated to be a landmark update. It boasts extensive enhancements, especially in the camera domain, and Pro models are set to feature a superior 3-nanometer processor. Given Apple’s recent decline in sales, the success of this new range is paramount to the company’s revival. Furthermore, other key Apple suppliers in India, such as Pegatron Corp. and a Wistron Corp. facility soon to be acquired by the Tata Group, are expected to partake in the iPhone 15 assembly process.
Representatives from Apple, Wistron, and Pegatron chose not to comment, and Foxconn hasn’t yet responded to inquiries. Driven by the Modi administration’s financial incentives for advanced manufacturing, Apple, through its Taiwanese suppliers, has expanded its footprint in India, tripling its iPhone production to a staggering $7 billion in the fiscal year ending in March.
