Apple has made more iPhone 15s in India than any previous model, and it plans to keep doing that. The company wants to move 25% of its iPhone production, which is more than 50 million phones, to India over the next two to three years, according to The Wall Street Journal. However, China will still be the biggest supplier of iPhones by a significant amount.
Foxconn and other companies that make Apple products think that Apple’s expansion in India is going well. They are getting ready for more growth in the future. Apple started slowly in India because of problems with the infrastructure and strong unions that have made labor rules stricter, like not allowing 12-hour work days, for example.
Apple is Growing in India
At the start of 2023, India’s commerce minister mentioned that Apple intended to produce 25 percent of its phones in the country. However, no specific time frame was provided. If the plan unfolds over the next two to three years, it would be a significant increase in production. This is noteworthy because the iPhone 15 was the first model released on launch day that was manufactured in India.
It’s been reported that Foxconn, an Apple contractor, will produce more iPhone 15s at its facility in Tamil Nadu, India, compared to previous models. This is in line with Apple’s strategy to spread out its manufacturing to reduce risks in the supply chain, especially considering tensions between the US and China.
Foxconn is in the process of constructing a new plant in the southern Karnataka state, scheduled to open in April 2024. Additionally, there are plans for another large-scale plant in the works, as per sources cited by the Wall Street Journal.
iPhone Production Strategies and Changes in US-China Relationship
Until now, Apple has manufactured only a small portion of its iPhones in India, and production used to be delayed compared to China, sometimes up to nine months. However, this pattern shifted with the iPhone 14, as it began production in India during the same month as in China. Moreover, the iPhone 15s manufactured in India were ready and available in stores right from the launch date.
Currently, the relationship between the United States and China is sensitive, as the US has recently implemented measures to restrict access to advanced technology in China. Despite this, Apple highlights the significance of the nation.
Apple CEO Tim Cook visited China twice in 2023. Apple is a significant seller of phones in China, contributing to approximately %19 percent of its total revenue. It’s important to note that all phones sold in China through authorized channels are manufactured in China and utilize local suppliers, as stated by Apple.
Apple’s focus on manufacturing iPhones in India is growing, with plans to move 25% of production to the country. Despite this, China remains the primary supplier. Foxconn sees positive expansion in India, addressing initial challenges. Apple’s intricate global strategy and efforts underline its commitment to diversification and navigating geopolitical complexities.