Apple is in the midst of a multi-year plan to diversify its manufacturing away from China to reduce supply risks for one of its most important products as Washington-Beijing tensions make trade unpredictable.
Meanwhile, India under Prime Minister Narendra Modi is pushing to build closer ties with the US and is determined to become a world manufacturing hub.
Before the iPhone 14, Apple had only a small portion of its iPhone assembly in India, with production running six to nine months behind total production in China. That lag was significantly reduced last year. By March, Apple was making 7% of its iPhones in the South Asian country, and it aims to close the gap in delivery times between the two Asian neighbors.
The scale of iPhone 15 production in India will depend on the availability of components, which are largely imported, and the speed of Foxconn's production lines outside Chennai.
The new iPhone, likely to be announced on September 12, promises to be the biggest update to the device in three years. It will include major camera upgrades and the Pro models will get an improved 3-nanometer A16 processor.
The new handsets are playing a key role in reviving the Cupertino giant’s sagging sales. Apple this month reported a third straight quarter of declining sales, hit by weak consumer demand in key markets such as the US, China and Europe.
Other Apple suppliers in India such as Pegatron Corp and a Wistron Corp plant being acquired by the Tata Group will also soon assemble the iPhone 15, Bloomberg reported.
Apple has steadily expanded its production in India through Taiwanese suppliers, taking advantage of financial incentives from the Modi government. In the fiscal year ending in March, the “Apple House” tripled its iPhone production there to 7 billion devices.
In April, the world’s largest tech company opened its first retail store in India, positioning the country as a key long-term retail opportunity and manufacturing hub. As of June, iPhone sales in India were up double digits, although Apple did not disclose exact figures.
(According to Bloomberg)
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