Apple Inc. is set to begin production of its cutting-edge iPhone 15, in Tamil Nadu, India with the aim of reducing the gap between its manufacturing center. Foxconn facility in Sriperumbudur is ramping up the delivery of iPhones manufactured in India adding diversity to their production amidst trade conditions. This strategic move by Apple does not strengthen its supply chain resilience. Also contributes to India’s growing role, in the tech industry.
Apple Inc. is embarking on a fresh chapter in its manufacturing saga, with the production of its cutting-edge iPhone 15 underway in Tamil Nadu, India. This strategic move aims to bridge the gap between its Indian operations and its primary manufacturing stronghold in China.
Taking center stage is a Foxconn Technology Group facility nestled in Sriperumbudur. This facility is gearing up to swiftly dispatch the latest iPhone models mere weeks after their commencement of production in Chinese factories. The motive behind this expedited effort is Apple’s proactive endeavor to augment the influx of new iPhones emanating from India, as insiders have revealed.
Hailing from Cupertino, California, the tech giant is in the midst of a multiyear undertaking to diversify its manufacturing landscape, strategically reducing its dependency on China. This imperative stems from the desire to fortify its supply chain resilience for its flagship products. This strategy becomes even more salient as uncertainties in trade relations between Washington and Beijing cast a shadow on predictability.
India, under the leadership of Prime Minister Narendra Modi, has orchestrated a concerted push to forge stronger bonds with the United States while simultaneously cementing its status as a prominent manufacturing hub. A notable shift in Apple’s India-centric assembly commenced with the iPhone 14, marking a stark departure from the past when only a fraction of iPhone assembly took place on Indian soil. This transformation significantly mitigated the temporal lag between Indian and Chinese production timelines, a gap that was considerably narrowed in the previous year. As of the close of March, Apple had successfully relocated the assembly of 7 percent of its iPhones to India. The aspiration for the current year is to move even closer to a state of equilibrium between shipment schedules from India and China, although suppliers are treading cautiously as certainty remains elusive, insiders divulged.
The extent of iPhone 15 production in India hinges on the seamless orchestration of various factors, including the unimpeded flow of imported components and the steady progression of production lines at the Foxconn facility in the vicinity of Chennai.
Anticipation surrounds the impending unveiling of the new iPhone iteration, which is poised to make its debut around September 12th. This iteration promises to usher in the most comprehensive array of enhancements in the device’s recent history, with notable upgrades across the entire spectrum of its camera system. The Pro models, in particular, will bask in the benefits of an enhanced 3-nanometer A16 processor. This forthcoming lineup bears immense significance in rejuvenating Apple’s sales trajectory, which recently encountered a slump. Over the past three quarters, lackluster consumer demand across pivotal markets such as the US, China, and Europe weighed heavily on the tech giant’s financial performance.
Amidst this transformative landscape, other major Apple partners based in India, namely Pegatron Corp. and a Wistron Corp. facility poised for acquisition by the Tata Group, are also primed to contribute to the assembly of the iPhone 15.
Apple’s footprint in India has steadily expanded courtesy of its associations with Taiwanese suppliers. This strategic approach has enabled the company to tap into financial incentives provided by the government, fostering an uptick in high-end manufacturing. The tangible outcome of this has been the tripling of iPhone production in India, yielding a figure surpassing $7 billion in the fiscal year culminating in March.
Recent months have witnessed Apple’s entry into the Indian retail landscape, with the inauguration of its maiden stores in April. The burgeoning Indian market is now perceived as not only a burgeoning retail prospect but also a pivotal production nucleus for Apple’s array of technological marvels in the long run. Notably, the quarter ending in June bore witness to double-digit growth in iPhone sales in India, a notable feat, though precise numerical data remains undisclosed.
Apple’s resolute commitment to expansion and investment in the Indian domain was emphatically articulated by Chief Executive Officer Tim Cook subsequent to his engagement with Prime Minister Modi during his visit to India in April. This pledge further underscores the tech behemoth’s dedication to nurturing its foothold and amplifying its presence across the country.
