Apple, the tech behemoth, has begun the assembly of its forthcoming iPhone 15 in India, signaling a major shift in its global manufacturing strategy. Foxconn, Apple’s primary iPhone manufacturer, is spearheading the effort at its Sriperumbudur plant in Tamil Nadu, as reported by Bloomberg News. Furthermore, other major partners like Pegatron Corp and Wistron are said to follow suit shortly, expanding India’s role in Apple’s manufacturing operations.
- Location: Foxconn’s facility in Sriperumbudur, Tamil Nadu.
- Partners: Pegatron and Wistron (soon to be part of Tata Group).
A Shift from China
With political tensions between the U.S. and China persisting, Apple is steadily diversifying its manufacturing hubs outside of China. India, given its robust manufacturing potential, has emerged as a significant beneficiary of this shift. Apple’s move aligns with India’s ambition under Prime Minister Narendra Modi to establish itself as a global manufacturing center. By the close of March last year, about $7 billion worth of iPhones, or 7% of the total production, were assembled in India. This marked a threefold increase from the previous fiscal year.
- Objective: Minimize reliance on China.
- Output: 7% of iPhones are now assembled in India.
- Value: iPhones worth $7 billion were produced in India last fiscal year.
Bloomberg’s reports further suggest that Apple aims to dramatically reduce the time gap between the release of iPhones manufactured in China and India. With the iPhone 15, this lag could be shortened to mere weeks.
Increased Presence in the Indian Market
Apple’s manufacturing story in India began in 2017 with the assembly of the iPhone SE. Last year witnessed the production of the iPhone 14 just three months post-launch. The trend indicates a further decrease in the gap between the iPhone’s official launch and the availability of the ‘made-in-India’ variant on the market.
- History: Apple began Indian production with iPhone SE in 2017.
- Progress: Reduced time-to-market for Indian-manufactured iPhones.
While base variants of the iPhones are manufactured in India, the Pro models continue to be exclusively produced in China. However, India’s role in Apple’s production narrative is expanding. Apart from iPhones, Apple has reportedly started manufacturing AirPods in its Hyderabad facility.
Future Prospects
As September approaches, rumors are rife about Apple unveiling the iPhone 15 series on the 12th. The new series promises innovative features, including a dynamic island notification system, a 48MP image sensor, and an improved battery capacity. The Pro versions are expected to feature an even more powerful 3nm A17 Bionic chipset and the first-ever periscope lens for iPhones, offering a 6x optical zoom.
- Expected Features: Dynamic Island notification, 48MP sensor, improved battery. Pro Version
- Additions: 3nm A17 Bionic chipset, periscope lens.
India’s Role in Apple’s Global Strategy
Apple opened its first stores in India in April, emphasizing the nation’s importance not just as a manufacturing hub but also as a significant retail market. Apple benefits from avoiding import taxes on iPhone units produced in India, potentially offering competitive pricing in a country where affordability is crucial. Given the dominant 95% Android market share, local manufacturing could be Apple’s strategy to gain a foothold in one of the world’s largest smartphone markets.
- Retail Growth: Apple’s first stores were inaugurated in April.
- Market Dynamics: Android holds a dominant 95% share in India.
Conclusion
Apple’s decision to ramp up iPhone 15 production in India underscores the nation’s growing importance in the tech giant’s global scheme. While challenges persist, the strategic move promises mutual benefits for both Apple and India. The former gets a diversified manufacturing base, and the latter solidifies its position as a global manufacturing powerhouse.
