Apple is working to increase production in India and reduce its dependence on manufacturing in China, a country that increasingly has a tense relationship with the United States.
The American giant has ordered Foxconn – the outsourced company to manufacture the phones – to start production of the new iPhone 15 at the factory in the state of Tamil Nadu, in the south-east of the country, according to sources consulted by Bloomberg . In China, where the manufacturer has the main production plant, the production of the phone started a few weeks ago. This represents a significant time advance, since it was usual for the plant in India to start production with a nine-month delay. Last year, Foxconn already reduced the time difference to six months, and managed to raise the number of phones produced in India to 7% of the total. The goal this year would be to make the production terms between the two countries the same.
This year, other Apple suppliers in India – Pegatron and Wistron – will also be involved in the assembly of the iPhone 15, a phone that will be introduced to the market on September 12 under the expectation of making the qualitative step most important of the last three years.
The growth of production in India will depend on the availability of components, most of which are imported, as well as the increase in the activity of other plants that Foxconn has outside Tamil Nadu.
India has become a strategic market for Apple. "We are committed to growing and investing across the country," CEO Tim Cook told Prime Minister Narendra Modi during a visit in April. In addition, the local government has increased tax incentives for technology companies to 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," confirmed Cook in an interview with CNBC.
Beyond production, India is also a strategic country in the commercial field. In April, the company opened the first physical stores and ensured that this Asian market is the one that registers the most growth in demand.
In recent months, US tech giants have shown a growing 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 the, and this meeting has created a sphere of greater cooperation", said Hemant Taneja, CEO of the investor General Catalyst, who also attended the meeting. At the same time, more and more managers of large American companies have their roots in this Asian country.
