Source to ChinaTimes, according to rumors in the mobile industry, due to increasing uncertainties in the mainland Chinese market, Apple plans to make India one of the first launch markets for its iPhone 15 series and aims to produce the iPhone 15 series simultaneously in India and China. By manufacturing and selling locally in India, Apple hopes to reduce the uncertainties in the Chinese market.

Reports from ICsmart suggest that industry rumors indicate that as mainland China continues to increase regulatory measures, Apple is also accelerating its expansion into India to mitigate uncertainties in the Chinese market. Suppliers have revealed that in the past, the production of new iPhones in India lagged behind China by about a year, but last year, the production gap had narrowed to approximately one month. Apple is now even more determined to expedite the production of the iPhone 15 in India this year, with the goal of achieving near-simultaneous production in both China and India or reducing the production gap to within 10 days.

The report points out that before the iPhone 14, Apple only assembled a small portion of its phones in India, with a shipment schedule lagging behind China by 6 to 9 months. However, this gap was significantly reduced last year. By the end of March this year, 7% of Apple’s iPhones were produced in India. Foreign estimates suggest that by around 2025, the proportion of iPhones manufactured in India could reach 25%.

TrendForce believes India will become the second-largest production site for iPhone

According to TrendForce insights, Apple is indeed aiming to produce more iPhones in India. From the iPhone 14 series, The company manufactured iPhones almost simultaneously in India and China, reducing the initial production gap between the two countries.

If we take a look at iPhone assembly capacity, there is still around 5% in India. Although Apple plans to bring not only assembly but also key component vendors from China to India, supply chain partners are showing a passive attitude toward establishing production sites there, considering India’s policies, languages, cultural factors, and vulnerable infrastructures.

Foreign vendors will face the challenges above, however, as for Indian local vendors, challenges are mainly on technical capabilities, Therefore the most effective way to enter Apple’s supply chain is to acquire companies/factories that are already on the certified list. Just like the Tata Group did.

Also, TrendForce indicates, that with Apple’s intention, PLI, and the following incentive policies, we believe India will gradually become the second-largest production site of the iPhone in the future. However foreign vendors should be willing to suffer higher costs or successfully obtain any form of compensation from Apple, otherwise the transition process will continue to be slow.

The Indian “Economic Times” notes that with the release of the iPhone 15 series this week, the Indian market has the opportunity to be among the first countries for sales. Additionally, it is expected that after December, iPhones manufactured in India will be exported to Europe and the United States, signaling Apple’s progress in diversifying its supply chain. Apple is already the largest smartphone exporter in India.

The report indicates that Apple has raised its annual growth target for sales in over 200 premium retail stores in India for the second and third quarters to nearly 100%. Apple CEO Tim Cook also mentioned in the latest earnings conference call that the company broke its revenue record in India, the world’s third-largest smartphone market, and achieved double-digit sales growth.

(Source: https://www.chinatimes.com/realtimenews/20230912005365-260409?chdtv)