Apple Expands iPhone 15 Production to India, Bridging the Gap with China

In a significant stride towards bolstering its India operations, Apple has initiated the production of its highly anticipated next-generation iPhone 15 in Tamil Nadu. The move is a calculated effort to reduce the gap between its manufacturing endeavors in India and its primary base in China.

At the heart of this endeavor is a Foxconn Technology Group plant located in Sriperumbudur, which is poised to commence the production of the latest iPhone models merely weeks after their manufacturing begins in China. This strategic maneuver aims to expedite the inflow of new iPhones from India, a move that aligns with Apple’s broader initiative to diversify its manufacturing footprint and mitigate supply chain vulnerabilities.

Apple’s pursuit of a more diversified manufacturing network comes amidst global trade uncertainties and geopolitical tensions, notably between the United States and China. India, under the leadership of Prime Minister Narendra Modi, has proactively pursued closer relations with the US and positioned itself as an attractive destination for manufacturing, in line with its “Make in India” initiative.

The journey towards reducing the gap between Indian and Chinese iPhone production commenced with the iPhone 14, where Apple shifted a significant portion of assembly to India, bridging the temporal lag that previously existed. With 7 percent of iPhones produced in India by March’s end, Apple is poised to further narrow this gap with the iPhone 15, aiming for closer parity in shipment timing.

The scale of iPhone 15 production in India hinges on the availability of components, many of which are imported, and the seamless ramp-up of production lines at the Foxconn facility near Chennai.

The impending iPhone 15, which is anticipated to be announced on September 12, promises to deliver the most substantial device upgrade in three years. With significant camera system enhancements across the range and an improved 3-nanometer A16 processor for the Pro models, Apple is poised to reignite interest and uplift sales. This revival is particularly timely, as the company recently reported declining sales for a third consecutive quarter due to subdued consumer demand in crucial markets.

Expanding its partnership with Taiwan-based suppliers, Apple has made headway in India, capitalizing on incentives offered by the Modi administration. The result has been a remarkable growth in iPhone production, with India contributing over $7 billion in revenue in the fiscal year ending in March.

Apple’s commitment to India extends beyond production, as reflected in its retail expansion and its positive outlook on the burgeoning Indian market. CEO Tim Cook, after meeting Prime Minister Modi, emphasized the company’s dedication to investing and growing in India, marking the country as both a key market and a crucial production hub in the company’s future endeavors.