India is gaining ground as an alternative to China for new investors: Apple sets standards by partially shifting production to India

Built for mass production: Foxconn factory in China for Apple products

Not relying solely on China is what many companies are currently trying to achieve. As simple as it sounds, it is just as difficult to implement in production practice. Apple is now putting its words into action. Manufacturing partner Foxconn has begun production of the iPhone 15 at its factory in Sriperumbudur in the Indian state of Tamil Nadu. This is the first time that a new iPhone is being produced on a larger scale outside of China.

It is remarkable how Apple has managed the operational risk of relocating production. Tim Cook and his team are not relying on a new service provider in India. Given the high production volumes and tight schedules, the risk of a new partner would have been unmanageable. Instead, Apple is making the move with its proven partner Foxconn. Old partner, new factory, new country, shared risk. This model could set a precedent. Wisdom is a strong word, but perhaps it is appropriate here.