Apple Supplier Foxconn Begins iPhone 15 Production In India Ahead Of September Launch: Report

Apple's supplier has reportedly begun production of its next-generation iPhone 15 in India.

This move is aimed at further reducing the gap between its operations in India and its main manufacturing base in China.

The Foxconn Technology Group's plant in Sriperumbudur, Tamil Nadu is gearing up to deliver the latest iPhone models shortly after they start shipping from Chinese factories, Bloomberg reported citing people familiar with the matter.

This strategic decision by Apple is intended to increase the number of new iPhones produced in India.

As tensions between the United States and China create uncertainty in trade, Apple, based in Cupertino, California, is working on a long-term plan to diversify its manufacturing away from China.

By doing so, the company aims to minimise risks in its supply chain for its most important products.

Meanwhile, India has been actively seeking closer ties with the US and positioning itself as a manufacturing hub.

Before the release of the iPhone 14, Apple had a minimal presence in India for iPhone assembly, with a significant lag in output compared to China.

However, this delay of around six to nine months in India production of iPhones was significantly reduced last year, and by the end of March this year, Apple was able to produce 7 per cent of its iPhones in the country.

The extent of iPhone 15 production in India will depend on the availability of components, most of which are imported, and the ramp-up of the operation of production lines at the Foxconn factory near Chennai.

Anticipated to be announced in September, the new iPhone is expected to bring the most significant updates to the device in three years.

Notably, the camera system across the range will undergo major upgrades, and the Pro models will feature an improved 3-nanometer A16 processor. The new lineup of Apple smartphones is crucial for boosting the company's declining sales. Apple recently announced its third consecutive quarter of decreasing sales, primarily due to weak consumer demand in key markets such as the US, China, and Europe.

Further, the iPhone 15 will soon be assembled by other Apple suppliers in India, including Pegatron and a Wistron factory that is being acquired by the Tata Group.

Apple has been gradually expanding its presence in India through its Taiwanese suppliers, taking advantage of the financial incentives offered by the Modi government to encourage high-end manufacturing.

As a result, Apple's iPhone production in India has tripled to over $7 billion in the fiscal year that ended in March.

Apple sees India as a promising market for its products and recently opened its first retail stores in the country.

In the long term, the company plans to expand its retail presence and manufacturing capabilities in the country.