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Aug 17, 20232 min read

Apple Ramps Up iPhone 15 Production in India to Challenge China Dominance

Updated: Jan 8, 2024

[Edited] The next generation of iPhones will start production in India just weeks after Chinese factories, as Apple seeks to boost its manufacturing presence in the country.

Foxconn
Credits: Reuters

The Foxconn plant in Sriperumbudur, Tamil Nadu, is preparing for iPhone 15 output shortly after the initial rollout from China. This aims to significantly increase the number of new iPhones made in India, according to sources familiar with the plans.


Apple wants to diversify manufacturing away from China over several years, reducing supply chain risk for key products amid unpredictable US-China trade. India's PM Narendra Modi has built closer US ties and promoted domestic manufacturing. Before the iPhone 14, just a fraction of iPhones were made in India, lagging China by 6-9 months.

That gap was cut last year, with 7% of iPhones produced in India by March 2022. The target this year is near equal output timing from both countries, though suppliers are uncertain. iPhone 15 India volumes depend on imported component availability and smooth Foxconn factory ramp-up near Chennai.


The new iPhone range, expected 12 September, is the biggest update in 3 years. Major camera upgrades across models, plus improved A16 chip for Pro versions. Critical for reviving declining sales after Q3 drops in key US, China and Europe markets.


Other Apple suppliers in India - Pegatron and Wistron (Tata) - will also soon make iPhone 15 models. Apple spokeswoman and supplier reps declined comment. Hon Hai Precision Industry (Foxconn) did not respond.

Apple has expanded in India via Taiwanese suppliers, aided by Modi administration incentives for high-end manufacturing. Helped triple iPhone output to over $7 billion in fiscal year ending March 2022, per reports. Views India as retail opportunity and important long-term production base.


iPhone sales grew double digits in India in Q2 to new high, though Apple hasn't disclosed figures. "Committed to growing and investing across the country," said CEO Tim Cook after April India visit.

 

  • iPhone 15 production starting soon in India at Foxconn plant

  • Seeks to boost India output close to levels of major China factories

  • Part of Apple strategy to diversify manufacturing away from China

  • India ramp-up depends on component supplies and smooth operations

  • iPhone 15 launch expected 12 September with major upgrades

Source: SCMP

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