Apple begins iPhone 15 production from India with significant updates in three years
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Chennai: Tech giant Apple Inc. has embarked on a strategic move to commence production of its highly anticipated next-generation iPhone 15 in Tamil Nadu. The decision underscores Apple's effort to bridge the gap between its manufacturing operations in India and its established base in China.
Sources familiar with the matter have revealed that Foxconn Technology Group's Sriperumbudur plant is gearing up to roll out the latest iPhone models within weeks of their debut from Chinese factories.
This expansion of iPhone production in India is part of Apple's long-term plan to minimize its reliance on China, thereby reducing supply chain vulnerabilities amid geopolitical uncertainties between the United States and China.
Previously, Apple had a marginal portion of iPhone assembly in India, lagging behind China's output by several months. However, significant progress has been made, with Apple having manufactured approximately 7% of iPhones in India by the end of March.
The goal for this year is to further narrow the timing gap between shipments from India and China, although suppliers cautiously await the outcome, speaking anonymously due to the sensitivity of the information.
The extent of iPhone 15 production in India hinges on the availability of components, many of which are imported, as well as the seamless ramp-up of production lines at the Foxconn factory near Chennai.
The impending iPhone 15 is poised to be the major update in three years, boasting substantial enhancements to its camera system across all variants. The Pro models are set to feature an upgraded 3-nanometer processor. This release is pivotal for Apple, which recently reported declining sales for the third consecutive quarter, attributed to subdued consumer demand in key markets like the US, China, and Europe.
Besides Foxconn, other Apple suppliers in India, namely Pegatron Corp. and a Wistron Corp. factory being acquired by the Tata Group, will also contribute to iPhone 15 assembly.
Apple's progressive expansion in India has been facilitated by its Taiwanese suppliers, taking advantage of financial incentives offered by the Modi administration to boost high-end manufacturing. This move has led to a threefold increase in iPhone production in India, exceeding $7 billion in the fiscal year ending in March.