Apple Set For Selling 'Made In India' iPhone 15 on Launch Day

Apple Inc AAPL will likely break new ground by making its India-built iPhone 15 available on the global launch day, a significant shift in Apple’s supply chain strategy as U.S.-China geopolitical tensions escalate.

Traditionally, China manufactured the majority of iPhones. Still, with the introduction of the iPhone 15, Apple plans to offer India-assembled devices on the first day of sale, marking a milestone for Indian production, Bloomberg cites familiar sources. 

The production of the iPhone 15 commenced at a Hon Hai Precision Industry Co Ltd HNHPF Foxconn Technology Group factory in southern Tamil Nadu in August, reflecting Apple’s ongoing efforts to reduce the gap between its India operations and its primary manufacturing hubs in China.

While this move signals Apple’s confidence in India’s production capabilities, there may be slight delays due to unforeseen logistics challenges. 

Apple’s move aligns with the Indian Prime Minister’s initiatives to boost local manufacturing and Apple’s strategy to diversify its supply chain beyond China.

The iPhone 15 will likely be a significant update, featuring enhancements to the camera system and an improved 3-nanometer processor for the Pro models. 

This launch is crucial for Apple as it seeks to rejuvenate sales following a decline over the past three quarters, partly due to subdued demand in key markets.

There’s a catch: While the iPhone 15 and iPhone 15 Plus are enjoying the ‘Made in India’ tag, the premium iPhone 15 Pro and Pro Max are still China-dependent. Apple’s Indian suppliers now contribute to a solid 7% of the global iPhone production.

In addition to Foxconn, other Apple suppliers in India, including Pegatron Corp and a Wistron Corp factory soon to be acquired by the Tata Group, are also expected to assemble the iPhone 15.

Apple’s interest in the Indian market extends beyond manufacturing, opening its first retail stores this year. 

In the quarter through June, iPhone sales in India experienced double-digit growth, underlining the country’s significance as both a retail opportunity and a production base for Apple.

China’s iPhone ban for government employees and Huawei Technologies Co, Ltd’s smartphone launch sent jitters across the stock last week. However, Morgan Stanley does not see much downside to the moves as both Apple and China are crucial to each other.

Price Action: AAPL shares traded higher by 0.21% at $179.74 premarket on the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

This news story was earlier reported by Benzinga India. Stay updated on financial news and trading ideas related to Indian markets on in.benzinga.com.