Apple’s supplier Foxconn has reportedly initiated the production process for the upcoming iPhone 15 within India. This strategic move aims to bridge the operational gap between India and China, which serves as Apple’s primary manufacturing base.
The manufacturing facility of Foxconn Technology Group in Sriperumbudur, Tamil Nadu is gearing up to produce the latest iPhone models, planning to commence deliveries shortly after the devices roll out from Chinese factories. This approach aligns with Apple’s strategy to enhance the number of new iPhones manufactured in India.
Amidst uncertainties arising from US-China trade tensions, Apple, headquartered in Cupertino, California, is strategically working to diversify its manufacturing beyond China, thereby mitigating supply chain risks for its flagship products.
Concurrently, India has been actively seeking stronger connections with the US and positioning itself as a burgeoning manufacturing hub.
Reports emerged on Tuesday indicating that Apple will initiate the manufacturing of its AirPods wireless earbuds at Foxconn’s facility, Hyderabad. With a substantial investment of $400 million, the Hyderabad plant will kickstart extensive production by December 2024.
The Foxconn factory in Hyderabad will undertake the assembly of AirPods. Its operations are likely to shift into full-scale mass production by the specified timeline.
Apple has already established the assembly of non-Pro iPhones in India through collaborations with partners such as Foxconn, Wistron in Bengaluru, and Pegatron in Tamil Nadu.
The introduction of AirPods as a locally manufactured product marks the second major category after iPhones. Notably, Apple’s AirPods have secured a leading position in the global market for true wireless stereo (TWS) devices.
It is possible that the production of AirPods could expand to encompass other manufacturing facilities in the future, mirroring the progression observed with iPhones in India.
Before the launch of the iPhone 14, Apple’s presence in India for iPhone assembly was minimal, lagging significantly behind Chinese production output. However, the delay in Indian iPhone production, which previously spanned around six to nine months, was substantially reduced last year. By the close of March this year, India accounted for 7% of Apple’s iPhone production.
The ambition for this year entails further narrowing the gap in shipment timing between India and China. Nevertheless, suppliers remain uncertain about the feasibility of achieving this objective.
The manufacturing of the iPhone 15 in India depends on two main factors. One is the availability of components, most of which are imported. The other factor is the expansion of production line operations at the Foxconn facility located near Chennai.
Expected to be unveiled in September, the new iPhone is anticipated to bring substantial updates after a three-year interval. Notably, the camera system across the range will undergo significant enhancements, while the Pro models will incorporate an improved 3-nanometer A16 processor. This new lineup is pivotal for revitalizing Apple’s declining sales, as the company recently announced its third successive quarter of decreasing sales, primarily due to weakened consumer demand in key markets such as the US, China, and Europe.
Moreover, Tata Group will acquire other Apple suppliers in India, including Pegatron and a Wistron factory. Thereafter, they will also commence assembling the iPhone 15. Apple progressively augments its presence in India through its Taiwanese partners. They capitalize on financial incentives of the Modi government to foster high-end manufacturing.
As a result, Apple’s iPhone production in India surged threefold, surpassing $7 billion in the fiscal year concluding in March. Recognizing India’s potential as a promising market, Apple recently inaugurated its first retail stores in the country.
In the long term, the company envisions expanding both its retail network and manufacturing capabilities within India.