Apple, $AAPL, iPhone 15 production begins in India

Apple Inc.'s upcoming iPhone 15 is commencing production in Tamil Nadu, India, as part of the company's strategy to reduce the gap between its manufacturing operations in India and its primary manufacturing hub in China.

The Sriperumbudur plant operated by Foxconn Technology Group is gearing up to produce the latest iPhone models shortly after they are launched from Chinese factories. This move is aimed at rapidly increasing the volume of new iPhones manufactured in India. The goal is to strengthen the supply chain for Apple's crucial products, especially as trade uncertainties between the United States and China persist, prompting Apple to diversify its manufacturing locations.

India, led by Prime Minister Narendra Modi, has pursued closer ties with the U.S. and positioned itself as a manufacturing center. Apple's initiative aligns with India's push to become a hub for manufacturing activities.

Before the iPhone 14, Apple had only a small portion of its iPhone assembly carried out in India, resulting in a lag of six to nine months compared to China's output. This gap was significantly reduced last year, and as of the end of March, 7% of iPhones were manufactured in India. The aim for this year is to further narrow the timing gap in shipments between India and China, although suppliers remain uncertain about achieving this goal. The information is not public, and the sources have requested to remain anonymous.