Apple's supplier has reportedly begun manufacturing the iPhone 15 successor in India.
This action is intended to narrow the distance between the company's operations in India and its primary manufacturing base in China.
People familiar with the matter told Bloomberg that the Foxconn Technology Group's facility in Sriperumbudur, Tamil Nadu is preparing to ship the latest iPhone models shortly after they begin shipping from Chinese factories.
Apple's intention with this strategic decision is to increase the number of iPhones manufactured in India.
As trade uncertainty is created by tensions between the United States and China, Cupertino, California-based Apple is working on a long-term strategy to diversify its manufacturing away from China.
By doing so, the company seeks to reduce supply chain risks for its most vital products.
Meanwhile, India has been positioning itself as a manufacturing hub and actively pursuing closer ties with the United States.
Prior to the release of the iPhone 14, Apple had a minimal iPhone assembly presence in India, with a significant output deficit compared to China.
Apple was able to produce 7 percent of its iPhones in India by the end of March of this year, a significant decrease from the six to nine-month delay that existed in India production of iPhones prior to the previous year.
This year's objective is to further reduce the shipping time difference between India and China. However, suppliers are dubious as to whether this objective will be met.
The extent of iPhone 15 production in India will depend on the availability of imported components and the ramping up of production line operations at the Foxconn factory near Chennai.
The new iPhone, which is expected to be announced in September, is anticipated to feature the most significant device enhancements in three years.
Notably, the camera system will be upgraded across the board, and the Pro models will feature a 3-nanometer A16 processor. Apple's new smartphone lineup is essential for reversing the company's sales decline. Apple recently reported its third consecutive quarter of declining sales, predominantly as a result of weak consumer demand in key markets including the United States, China, and Europe.
In addition, other Apple suppliers, including Pegatron and a Wistron factory that is being acquired by the Tata Group, will shortly assemble the iPhone 15 in India.
Apple has been progressively expanding its presence in India via its Taiwanese suppliers, taking advantage of the Modi government's financial incentives to promote high-end manufacturing.
Consequently, iPhone production in India tripled to more than $7 billion during the fiscal year that ended in March.
Apple recently launched its first retail stores in India, viewing the country as a promising market for its products.
The company intends to expand its retail presence and manufacturing capabilities in the country over the long term.
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