As part of its ongoing efforts to reduce dependency on China, Apple is set to start manufacturing its high-end iPhone Pro and Pro Max models in India. This development will begin with the iPhone 16 series, slated for production in the current fiscal year. Foxconn, a long-standing partner of Apple, will manage the production process.
Expanding Local Production
Until now, Apple’s local production in India has been limited to non-Pro models. However, this year, the company aims to manufacture the Pro and Pro Max models locally, ensuring that the India-assembled iPhone 16 Pro models are available immediately after their global launch. Foxconn’s facility in Sriperumbudur, Tamil Nadu, will commence the ‘new product introduction’ (NPI) process for the iPhone 16 Pro models and proceed to mass production once the phone is launched.
Building on Existing Operations
Apple’s decision to expand production in India builds on its existing operations in the country. Last year, the India-built iPhone 15 series was available to customers on the first day of global sales. During FY24, Apple assembled $14 billion worth of iPhones in India, accounting for 14% of its global iPhone production. This marks a significant increase in the company’s commitment to Indian manufacturing.
Market Performance and Future Plans
Apple currently holds a 6% share of India’s smartphone market and accounted for 23% of the smartphone revenue share in 2023, surpassing Samsung’s 21%. The company shipped over 10 million iPhones in India in 2023, up from 6 million in 2022. Anticipating high demand for the upcoming iPhone 16 series, Apple plans to produce 90 million units in 2024, a 10% increase compared to the iPhone 15 series.
Expansion Beyond iPhones
In addition to iPhones, Apple is exploring the production of other devices in India. The company is considering manufacturing iPads through Foxconn, encouraged by the government’s initiatives to attract more supply chains. Apple also plans to start AirPods production in India early next year, with an increased focus on producing components for AirPods’ wireless charging cases through US-based contract manufacturer Jabil in Pune.
Aiming for 25% Production in India
Apple’s aggressive expansion in India is part of a broader strategy to manufacture 25% of all its iPhones in the country over the next 3-4 years, up from the current 14%. This shift not only diversifies Apple’s supply chain but also strengthens its presence in one of the world’s fastest-growing smartphone markets.
Conclusion
Apple’s move to manufacture iPhone Pro models in India represents a significant shift in its global production strategy. By expanding its manufacturing capabilities in India, Apple is not only reducing its reliance on China but also positioning itself to meet growing demand in the Indian market. This strategic decision is poised to bolster Apple’s market share and revenue in India while contributing to the country’s manufacturing sector.
