EXCERPT :This move is aimed at rapidly increasing the volume of new iPhones manufactured in India and reducing the time gap between its India operations and main manufacturing base in China.

Apple is commencing production of its next-generation iPhone 15 in a Sriperumbudur-based Foxconn facility in Tamil Nadu. This move is aimed at rapidly increasing the volume of new iPhones manufactured in India and reducing the time gap between its India operations and main manufacturing base in China.

To mitigate the supply chain risk caused by trade tensions with China, Apple has taken steps to diversify its manufacturing and increase high-end manufacturing in India with the help of Taiwanese suppliers. This decision was made possible by the financial incentives offered by the Modi administration, which has resulted in Apple's gradual expansion in India.

Prior to the iPhone 14, Apple had only a small portion of its iPhone production in India, resulting in a six to nine-month lag behind China's output. However, this delay was significantly reduced last year, and as of March, Apple produced 7% of its iPhones in India. The objective for this year is to narrow the gap in shipment timing between India and China. However, given that the extent of iPhone 15 production in India hinges on the availability of imported components and the successful ramp-up of production lines at the Foxconn factory in Chennai. It remains to be seen whether the goal of achieving parity on shipment timing with China will be met.

Apple is also slated to start producing its AirPods wireless earbuds at Foxconn's Hyderabad facility, which has an approved investment of$400 million. The plant is expected to begin large-scale production by December 2024