In the first quarter of each year, a trial production run is commenced, with Apple providing an entire plan for the year
The trial production phase is also called NPI or New Production Introduction. Apple is said to launch four iPhone 15 models later this year, so it issues a plan to its supply chain partner, which in this case is Foxconn. Foxconn then provides Apple with a bill of materials (BoM), which is the cost to assemble one iPhone 15 unit and sets up the necessary equipment to begin that trial production run. After the initial tests are completed, Foxconn collects the important data, improves and refines its production process, corrects any problems it encounters, and then enters the mass production stage, which is expected to happen in the second half of 2023. According to Economic Daily News, since Foxconn received the NPI for this year, it is likely to receive the bulk of iPhone 15 orders, with firms such as Pegatron and Luxshare receiving the remaining. Due to ongoing supply chain disruptions that were encountered in late 2022 at Foxconn’s assembling facility in China, Apple will take a percentage of its iPhone 15 production to India. Even in this region, Foxconn is said to undertake the responsibility of assembling Apple’s upcoming lineup, showing that the latter still depends on it. However, due to the previous mishaps, Apple was reportedly said to have withdrawn its assembling partner’s exclusivity status to mass produce the higher-end iPhone 15 Pro and iPhone 15 Ultra. Given that these two premium models are said to tout even more exclusive features this year compared to the less expensive versions, they will likely be in higher demand, so Apple wants a steady supply to be available for its customers to maintain increased profit margins. In order for this plan to succeed, Apple will require a diversified supply chain, meaning Foxconn will not be the only entity involved in mass production. News Source: Economic Daily News
