Apple Supplier Foxconn Initiates Production of iPhone 15 in India as Part of Diversification Efforts

In a strategic move to diversify its manufacturing operations away from China, Apple’s key supplier, Foxconn, has commenced production of the highly anticipated iPhone 15 at its Sriperumbudur plant in India. In 2019, it has said that it had the capacity to build enough iPhones outside of China to satisfy demand.

This significant development comes as tensions between the United States and China continue to impact global supply chains. According to a recent Bloomberg report, the Sriperumbudur facility is poised to deliver the new iPhones shortly after their initial shipment from China-based factories.

The ongoing geopolitical uncertainties have prompted Apple to proactively reshape its supply chain, thus reducing its reliance on Chinese manufacturing. Against this backdrop, Apple CEO Tim Cook highlighted the immense potential that India offers during discussions with India’s Prime Minister Narendra Modi. Cook stated that India represents a “huge opportunity” for the tech giant.

With the Biden administration implementing measures to restrict technology flow and investment into China due to bipartisan concerns about China’s governance, Apple’s decision to diversify its production locations is a prudent strategy. In parallel, China has also imposed limitations on the sale of specific U.S. semiconductors.

Notably, Apple has significantly augmented its iPhone production capacity in India, with an assembly output of over $7 billion in the preceding fiscal year, as reported by Bloomberg. This enhanced production capacity positions Apple as a major player in the Indian manufacturing landscape. In a remarkable shift, nearly 7% of Apple’s iPhones are currently assembled in India, a stark contrast to earlier timelines that lagged behind China’s production schedules.

Traditionally, Apple unveils its latest iPhone lineup at its annual September event. This year’s iteration is expected to incorporate substantial camera enhancements and an upgraded processor for the Pro models, as reported by Bloomberg. This aligns with Apple’s consistent commitment to innovation and delivering cutting-edge features to its customers.

Expanding beyond Foxconn, other prominent manufacturers are also set to join the ranks of iPhone assemblers in India. Pegatron and a Wistron factory under the acquisition of the Tata Group are gearing up to contribute to India’s burgeoning role in iPhone production. Although Pegatron declined to comment, and other entities mentioned in the article did not immediately respond to requests for comment, this emerging trend of diversification underscores the broader industry shift away from single-source manufacturing.

As the smartphone landscape evolves and geopolitical dynamics persist, Apple’s strategic maneuvering positions it to navigate these challenges adeptly while continuing to deliver world-class products to its global customer base. The move to initiate iPhone 15 production in India signifies a pivotal step in reshaping the technology manufacturing landscape and reducing dependence on a single market.