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Foxconn Technology (OTCPK:FXCOF) is starting production of Apple’s (NASDAQ:AAPL) new iPhone 15 at a facility in the Indian state of Tamil Nadu, and aims to deliver the phones only weeks after they begin shipping from factories in China, Bloomberg News reported citing people with knowledge of the matter.
The tech giant aims to narrow the gap between its India operations and main production base in China. The companies plan to rapidly increase the volume of new iPhones coming from India.
Apple is on a multiyear project to branch out its production away from China, de-risking the supply chain for its vital products as tensions between the U.S. and China make trade less predictable. Meanwhile, India is seeking to have closer ties with the U.S. and make the country a manufacturing hub.
Before the iPhone 14, India output was behind China by six to nine months. However, this delay was reduced last year, and Apple made 7% of its iPhones in India at the end of March. This year, the company aims to move closer to level on shipment timing from India and China, but suppliers are not certain they will attain it, the report added citing the sources.
The capacity of India manufacturing for the iPhone 15 will depend on the availability of components, which are mostly imported, and the ramp-up of production lines at Foxconn’s — formally known as Hon Hai Precision (OTCPK:HNHAF) (OTCPK:HNHPF) — Sriperumbudur plant, near the city of Chennai.
The new iPhone, wich could be announced on Sept. 12, is expected to be the biggest upgrade to the phone in three years. The likely upgrades includes the camera, and the Pro models will is also anticipated to get an improved 3-nanometer A16 processor, the report added.
Earlier in August it was reported that the Taiwan-based company will invest $350M to establish a unit to produce components for smartphones, including for Apple’s iPhone, in Karnataka.
Other suppliers for Apple in India which are Pegatron and a Wistron Corp. facility — being acquired by the Tata Group — will also soon assemble the iPhone 15, according to the Bloomberg report.
Apple, which opened its first retail stores in India in April, sees the country as a growing market for retail and manufacturing base. Apple had tripled iPhone production to more than $7B in India in the fiscal year which ended in March. Meanwhile, in Q3, iPhone sales in India rose double-digits to a new high, but Apple did not disclose the exact figures, the report noted.
The new iPhone could be important to reviving declining sales. The sales have been impacted by weak consumer demand in key markets such as the U.S., China and Europe.
Image and article originally from seekingalpha.com. Read the original article here.