For the first time, Apple will assemble the top-tier Pro and Pro Max models of its forthcoming iPhone 16 series in India. This strategic move, executed through its partner Foxconn, aims to enhance Apple’s manufacturing footprint in India as the tech company seeks to diversify production beyond China, according to sources familiar with the matter.
A source informed Moneycontrol, “Every year, Apple seeks to deepen its manufacturing capabilities with partners in India. Production of Pro models has been under consideration for the last couple of years. This year, Apple will manufacture the Pro and Pro Max models in India to ensure that India-assembled iPhone 16 Pro models are available in the country post-launch.”
Last year, Apple made significant strides by making iPhone 15 units assembled in India available to Indian customers on the first day of global sales. The base iPhone 15 models were manufactured locally, followed by the iPhone 15 Plus production by Pegatron.
A growing manufacturing hub
Various reports indicate that Foxconn’s facility in Sriperumbudur, Tamil Nadu, will soon initiate the ‘new product introduction’ (NPI) process for the iPhone 16 Pro models and will transition to mass production upon the phone’s launch. Foxconn often gets first preference for new product manufacturing due to its extensive capabilities and deep integration within Apple’s supply chain.
“In the initial phase of iPhone 16 series availability, the Pro, and Pro Max models will likely be imported. However, India-made Pro models will be available within this fiscal year, similar to the approach with the iPhone 15 Plus,” another source added. Queries sent to Apple and Foxconn went unanswered.
Market impact and production expansion
According to Counterpoint, Apple holds a 6 percent share of India’s smartphone market. In 2023, Apple accounted for 23 percent of the smartphone revenue share, surpassing Samsung’s 21 percent. Apple shipped over 10 million iPhones in India in 2023, up from 6 million in 2022, securing the top revenue position for the year.
Anticipating high demand, Apple is preparing 90 million units of the iPhone 16 series for 2024, which is a 10 percent increase over the iPhone 15 series. The company is leveraging AI services to boost interest in its new lineup following a challenging 2023.
Apple’s Chief Operating Officer, Jeff Williams, recently visited Shenzhen, China, to discuss the supply chain ahead of the iPhone 16 series launch. As Apple ramps up production, contractors in China, including Foxconn’s plant in Shenzhen, are recruiting workers, as reported by the South China Morning Post on July 24.
A strategic shift towards India
Apple has been aggressively increasing the production of its flagship iPhones in India through Foxconn and Tata Electronics. Tata, having acquired Wistron’s operations, is set to acquire Pegatron’s India operations, including an iPhone manufacturing plant near Chennai and another under-construction unit.
Apple aims to manufacture a quarter of all its iPhones in India over the next 3–4 years, up from the current 14 percent. The company assembled $14 billion worth of iPhones in India during FY24, constituting 14 percent of its global iPhone production, as revealed by the Economic Survey 2023-2024. This expansion includes building a network of local vendors to reduce dependence on Chinese suppliers.
In 2022, JP Morgan analysts estimated that a quarter of all Apple products would be made outside China by 2025, up from 5 percent at that time.
Future plans and price adjustments
Apple may also resume preparations for manufacturing its iPads in India through Foxconn, encouraged by the Indian government’s push to attract more supply chains. This development follows a previous attempt to partner with China’s BYD to make iPads in India, which faced hurdles due to geopolitical concerns.
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India aims for Apple to locally manufacture its entire product range in the coming years, including laptops and desktops. Moneycontrol reported on July 8 that Apple is enhancing the production of components for AirPod wireless charging cases through US-based contract manufacturer Jabil in Pune, and could extend this to Foxconn. Eventually, the initial production of AirPods in India is likely to commence in the forthcoming year.
Apple has reduced prices of its iPhone models in India by 3-4 percent following a reduction in basic customs duty on mobile phones from 20% to 15% in India’s annual budget. Consequently, this adjustment aligns with the new fiscal policies.
Consequently, price cuts range from Rs 300 for models like the iPhone 13, 14, and 15, to up to Rs 6,000 for the iPhone 15 Pro and Pro Max. This marks the first instance of Apple lowering prices on current-generation Pro models in India.