Apple Inc. is set to begin manufacturing its iPhone 16 Pro and Pro Max models in India for the first time. Foxconn Technology Group, Apple’s key partner, will commence assembly of these devices at its Tamil Nadu facility shortly after their global launch this fall. Apple is also the fastest-growing brand in India in the last 50 years.
Why? Because this move is a step in Apple’s efforts to reduce reliance on China for manufacturing. But we want you to note that the production will not be entirely local. Most components for these premium models will still be imported, with only the final assembly taking place in India. One of the reasons for this could be the fact that 50% of India-made iPhones are “not good enough”
In the fiscal year ending March 2024, Apple’s iPhone production in India accounted for approximately 14% of its global output, valued at $14 billion. The company aims to increase this share in the coming years. And if things go as planned, Apple then plans on manufacturing even the camera modules in India
The locally assembled iPhone 16 Pro models will be exported to markets in Europe, the Middle East, and the US. Although local assembly could reduce prices by up to 10% for the India-made iPhone Pro compared to imported devices, the phones are likely to remain more expensive in India than in some other markets. Why? Due to import duties on components and local taxes.
This development aligns with Apple’s strategy to mitigate risks associated with US-China tensions. And capitalize on India’s growing importance as both a manufacturing hub and a consumer market. However, complete localization of iPhone production in India remains a distant goal.
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