Finance
Apple Inc.’s next-generation iPhone 15 is beginning production in Tamil Nadu, in an effort to further narrow the gap between its India operations and main manufacturing base in China.
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, people familiar with the matter said.
The Cupertino, California-based firm is on a multiyear project to diversify its manufacturing away from China, de-risking the supply chain for its most important products as tensions between Washington and Beijing make trade less predictable. India, under Prime Minister Narendra Modi, has sought to build closer ties to the US and make itself a manufacturing hub.
Before the iPhone 14, Apple had only a sliver of its iPhone assembly in India, which lagged China output by six to nine months. Last year, Apple significantly curtailed that delay, and by the end of March, it manufactured 7% of its iPhones in India. The objective for this year is to approach parity in shipment timing between India and China. However, suppliers remain uncertain about achieving this goal, as the information is not public, disclosed individuals who requested anonymity.
The extent of iPhone 15 production in India will hinge on the accessible supply of components, predominantly imported, and the seamless acceleration of production lines at the Foxconn factory situated outside Chennai.
The new iPhone, likely to be announced on Sept. 12, promises to be the biggest update to the device in three years. It will include major upgrades to the camera system across the range, and the Pro models will gain an improved 3-nanometer processor. The new family of handsets is critical to reviving flagging sales. Apple this month reported its third straight quarter of declining sales, weighed down by tepid consumer demand in key markets like the US, China and Europe.
Pegatron Corp. and a Wistron Corp. factory, which the Tata Group is in the process of acquiring, are also set to commence iPhone 15 assembly in India soon, according to the sources.
An Apple spokeswoman and representatives of Wistron and Pegatron declined to comment. Foxconn did not respond to a request for comment.
Apple has steadily expanded in India through its Taiwanese suppliers, benefiting from some of the Modi administration’s financial incentives to bring in more high-end manufacturing. Apple’s iPhone production in India surged, tripling to over $7 billion in the fiscal year that concluded in March, as reported by Bloomberg News earlier.
Apple, 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. In the quarter through June, iPhone sales in India grew double-digits to a new high, though Apple hasn’t disclosed precise numbers.
