Apple has reportedly initiated production of its upcoming iPhone 15 model in India, showcasing the company’s commitment to diversify its manufacturing operations. The Taiwanese electronics giant Foxconn, historically known for producing iPhones in China, has now started manufacturing the latest iPhone iteration at its facility in Tamil Nadu, India. This move is anticipated to lead to deliveries of the new iPhones shortly after their commencement in China.
This strategic shift is part of Apple’s broader objective to expand its manufacturing presence in India, thereby decreasing its dependency on China due to disruptions caused by the Covid-19 pandemic and escalating tensions between China and the United States. Beyond bolstering supply chain diversity, the move to India aligns with Apple’s aspiration to establish a stronger position in the Indian market, identified as a pivotal growth sector.
Apple’s CEO, Tim Cook, has previously emphasized the promising potential of the Indian market. This year, Apple inaugurated its first retail stores in India to augment its market share. Sales of iPhones in India surged by double digits in the second quarter, setting a new record.
Wall Street analysts share a favorable outlook for Apple’s expansion in India. Morgan Stanley analysts project that Apple’s revenue in the country could witness a sevenfold increase over the next decade, potentially reaching around $40 billion. Positive macroeconomic conditions in India, coupled with economic reforms, the growth of local manufacturing, and an uptick in digitalization, contribute to this optimistic outlook for Apple’s growth trajectory in the Indian market.
Overall, Apple’s decision to manufacture its forthcoming iPhone model in India and to amplify its presence in the country underscores a significant opportunity both in terms of manufacturing capabilities and sales prospects. With India’s expanding middle class, Apple is poised to expand its customer base. Moreover, diversifying its manufacturing from China serves as a strategic move to mitigate risks linked to US-China relations and China’s economic recovery.
Neither Apple nor Foxconn has officially commented on the reported production transition to India.
