Apple is working to increase production in India to reduce the dependence of its manufacturing on China, a country that has an increasingly tense relationship with the United States.
The North American giant has commissioned Foxconn – the company subcontracted to manufacture the phones – to begin production of the new iPhone 15 at its factory in the state of Tamil Nadu, in the southeast of the country, according to sources consulted by Bloomberg. In China, where the manufacturer has its main production plant, production of the phone began a few weeks ago. This represents a significant temporary advance, since the usual thing was that the plant in India started production with nine months of lag. Last year, Foxconn already reduced the time difference to six months, managing to raise the number of phones produced in India to 7% of the total. The objective this year would be to close with production terms that go hand in hand between both countries.
This year, other Apple suppliers in India –Pegatron and Wistron– will also be involved in assembling the iPhone 15, a phone that will be launched on the market on September 12 with the expectation of making the biggest qualitative leap in the last three years.
Production growth in India will depend on the availability of components, most of which are imported, as well as increased activity at other Foxconn plants outside of Tamil Nadu.
India has become a strategic market for Apple. “We are committed to growing and investing across the country,” Chief Executive Tim Cook told Prime Minister Narendra Modi on a visit last April. In addition, the local government has increased tax incentives for technology companies that manufacture in the country.
The commitment was reaffirmed again in June, when Modi visited US President Joe Biden at the White House. “India represents a huge opportunity,” Cook confirmed in an interview on CNBC.
Beyond production, India is also a strategic country at a commercial level. Last April, the company inaugurated the first physical stores, ensuring that this Asian market is the one that registers the highest growth in demand.
In recent months, big US tech companies have shown increasing interest in the Indian market. When Modi visited Washington, big tech executives met with the Indian leader to strengthen ties of collaboration. “We are in a digital war with China, and this meeting has created a sphere of greater cooperation,” said Hemant Taneja, CEO of the investment company General Catalyst, who also attended the meeting. At the same time, more and more managers of large North American companies have their roots in this Asian country.
