iPhone 15 is rumoured to be launched on September 12, 2023. It is impressive to see Apple’s effort to ramp up its manufacturing presence in India and reduce the time gap between its manufacturing timelines in India and China. This move not only strengthens Apple’s production capabilities in India but also aligns with the Indian government’s ” Make in India” initiative to boost local manufacturing and create jobs.

 

The shift to manufacturing the latest iPhone models in India is significant for several reasons:

 

1. Reduced Dependence on China: By expanding its manufacturing operations in India, Apple reduces its heavy reliance on China for production. This diversification of manufacturing locations can help mitigate risks related to supply chain disruptions and geopolitical tensions.

 

2. Cost Efficiency: Manufacturing in India can potentially offer cost savings in terms of labour and operational expenses compared to manufacturing in China. This could also allow Apple to explore competitive pricing strategies in the Indian market.

 

3. Local Sourcing and Supply Chain: With manufacturing happening in India, Apple can also explore sourcing components locally, promoting the growth of the Indian electronics supply chain. This can contribute to job creation.

 

4. Domestic Market Growth: As Apple produces more iPhones within India, it can take advantage of local manufacturing benefits to address the growing demand for smartphones in the Indian market. This could potentially lead to more competitive pricing for Indian consumers.

 

5. Trade and Tax Benefits: local manufacturing can also lead to favourable trade and tax Benefits, which could further incentivise Apple to continue expanding its production capabilities in India.

 

 

It’s interesting to note that Apple’s manufacturing partners, including Foxconn, Pegatron, and Wistron, are actively involved in this effort. Their involvement signifies the commitment of these companies to the Indian market and the potential they see in establishing a strong manufacturing ecosystem in the country.

 

These developments indicate that Apple is moving closer to its goal of bringing the “made in India” iPhones to the market soon after their global launch. This aligns with their strategy of increasing local production and promoting domestic manufacturing capabilities. However, it has been recorded that Apple has not only been manufacturing iPhones but Airpods as well.

 

Apple indeed relies on an extensive network of suppliers and subcontractors to manufacture its products, and these suppliers often produce specific components that are then assembled into the final products. China has been a major hub for electronics manufacturing and is home to many of Apple’s suppliers.

 

However, while this close network of suppliers and subcontractors can offer advantages, it also comes with potential risks. Disruptions such as natural disasters, geopolitical tensions, or unexpected events (such as COVID-19) can impact the supply chain and disrupt production. To address these risks, Apple is trying to look for alternatives in its supplier base and establish contingency plans to mitigate potential disruptions.

 

The scale of Indian production for the iPhone 15 will depend on the ready availability of components, which are largely imported, and the smooth ramp-up of the production lines at the factory in Chennai, Tamil Nadu, India.

 

Apple’s retail presence is also expanding in India through authorised resellers and premium outlets. Apple also opened Inc stores in Delhi and Mumbai in April 2023. These stores will provide a premium experience that all Apple loyalists are a fan of.