Apple’s primary supplier, Foxconn, has begun production of the upcoming iPhone 15 model in its Sriperumbudur plant in India, according to sources cited in a report by Bloomberg. This move comes as Apple diversifies its manufacturing operations away from China, a strategy to reduce its dependence on a single region for production.
The Sriperumbudur plant is gearing up to deliver the new iPhones shortly after they start shipping from Foxconn’s factories in China. This marks another significant step in Apple’s ongoing efforts to expand its production capabilities in India. The company has recently increased its iPhone production in India, assembling over $7 billion dollars worth of iPhones in the country during the last fiscal year.
Apple’s decision to diversify its manufacturing operations is driven by factors, including the ongoing tensions between the U.S. and China and Apple’s interest in capitalizing on India’s potential as a significant market and manufacturing hub. After meeting with Indian PM Narendra Modi, Apple CEO Tim Cook expressed optimism about India’s opportunities for the company.
The strained relationship between the U.S. and China has led both countries to restrict certain technologies and investments. As a result, Apple’s move to manufacture more iPhones outside of China helps mitigate potential disruptions to its supply chain. Moreover, producing iPhones in India allows Apple to tap into a skilled workforce and potentially reduce manufacturing costs.
Apple’s shift towards diversification has been broader than Foxconn’s. Other major manufacturing partners, such as Pegatron and the Wistron factory that the Tata Group is acquiring, are reportedly gearing up to assemble the iPhone 15 in India. This underscores the broader trend of Apple’s manufacturing network becoming more geographically dispersed.
The move towards diversification has shown significant progress, with Apple now producing nearly 7% of its iPhones in India, according to sources cited by Bloomberg. This marks a notable improvement from the past when the time lag between iPhone assembly in India and China was several months.
The upcoming iPhone 15 model is expected to feature significant camera updates and improvements in the processor, particularly in the Pro models. As Apple typically unveils its new iPhone lineup at its annual event in September, anticipation is building around the features and capabilities the new model will bring to the market.
While Foxconn, Pegatron, and the Tata Group-owned Wistron factory remain silent on these developments, it’s clear that Apple’s efforts to diversify its manufacturing operations are well underway. This strategic move enhances Apple’s resilience to geopolitical uncertainties and positions the company to leverage India’s potential as a critical market and production centre.
As Apple continues to navigate the complexities of global supply chains and changing international dynamics, its commitment to diversification highlights its dedication to maintaining a robust and adaptable production ecosystem. The successful execution of these plans is pivotal for Apple’s long-term growth and competitiveness in the technology market.