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Apple supplier Foxconn starts iPhone 15 production in India

By Nithya Bose in Apple News, posted August 16, 2023

Foxconn, a major supplier for Apple, has begun production of the upcoming iPhone 15 in Tamil Nadu, India.

It would bridge the gap between Apple's manufacturing operations in India and its primary base in China.

The production of the latest iPhone models is set to begin at the Foxconn plant in Sriperumbudur.

It plans to deliver the devices shortly after they start rolling out from Chinese factories.

Apple is on a multiyear project to shift its manufacturing away from China, reducing supply chain vulnerabilities amid uncertain trade relations between the US and China.

Under Prime Minister Narendra Modi, India has been actively seeking to strengthen its manufacturing capabilities and forge closer ties with the US.

Previously, Apple's iPhone assembly in India was limited, delaying six to nine months compared to Chinese production.

However, this gap has significantly decreased over the past year, and by the end of March, around 7 percent of iPhones were being manufactured in India.

Apple's goal for this year is to narrow the timing disparity between shipments from India and China.

The extent of iPhone 15 production in India will depend on the availability of components, many of which are imported, and the smooth operation of production lines at the Foxconn facility near Chennai.

Expected to be unveiled around September 12, the iPhone 15 is expected to feature major improvements.

It includes significant upgrades to the camera system across all models and an enhanced 3-nanometer A16 processor for the Pro models.

Third quarter of declining sales

These are crucial for boosting sales, as Apple recently reported its third consecutive quarter of declining sales.

It is due to sluggish demand in key markets like the US, China, and Europe.

Other Apple suppliers in India, including Pegatron Corp and a Wistron Corp factory soon to be acquired by Tata, are also poised to assemble the iPhone 15.

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Apple's expansion in the country has been facilitated by incentives from the Modi administration to promote high-end manufacturing.

This has resulted in a substantial increase in iPhone production in India.

In the long run, Apple sees India as a growing retail market and a significant device production hub.

CEO Tim Cook reinforced the company's commitment to India's growth after he met with Prime Minister Modi in April.

Apple's journey in India includes opening retail stores and seeing double-digit growth in iPhone sales during the second quarter.

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