“Every year, Apple looks to deepen its manufacturing capabilities with partners in India. Pro model production is something that has been under consideration for the past few years. This year, Apple will manufacture the Pro and Pro Max models in India to ensure that the iPhone 16 Pro models assembled in India will be available in the country after launch,” a source familiar with the matter said. Money Control.
Last year, Apple made made-in-India iPhone 15s available to Indian customers on the first day of global sales. The company not only manufactured the base models of the iPhone 15 in India, but later ensured local production of the iPhone 15 Plus by Pegatron.
Sources said that Foxconn’s plant in Sriperumbudur, Tamil Nadu, will soon begin the ‘new product introduction’ (NPI) process for the iPhone 16 pro models and will enter the mass production phase once the phone is launched.
The source also said that Foxconn typically receives first preference for manufacturing new products because of its extensive capabilities and deep integration into Apple’s supply chain.
“In the initial phase of iPhone 16 series availability, it is likely that the Pro and Pro Max models will be imported. But Apple will offer Pro models made in India this fiscal, similar to how it did with the Apple 15 Plus,” another person aware of the development said.
Requests to Apple and Foxconn have not elicited any response.
According to Counterpoint, Apple holds 6% of the Indian smartphone market. In 2023, Apple accounted for 23% of smartphone revenue, surpassing Samsung’s 21% market share. Apple shipped over 10 million iPhones in 2023 in India, up from 6 million in 2022, securing the top spot in terms of revenue for the year, ahead of Samsung.
Apple is forecasting strong demand for its iPhone 16 series, which is set to launch in September. The company is relying on artificial intelligence services to boost interest in its new lineup after a difficult 2023. The Cupertino-based company is preparing 90 million iPhone 16 units for 2024 alone, 10% more than the iPhone 15 series.
Apple’s COO Jeff Williams notably visited Shenzhen, the Chinese manufacturing hub, to discuss the supply chain ahead of the launch of the iPhone 16 series. Apple is currently ramping up production of its iPhone 16 series devices as its contract manufacturers in China, including Foxconn’s Shenzhen factory, are hiring workers, the South China Morning Post reported on July 24.
Apple has been aggressively ramping up production of its flagship iPhone devices in India through Foxconn and Tata Electronics. Tata, which acquired Wistron’s operations, is acquiring Pegatron’s Indian operations, including an iPhone manufacturing plant near Chennai and another unit under construction.
Apple is looking to expand its manufacturing base in the country, with a goal of making a quarter of all its iPhones in India over the next three to four years, up from 14% of its total iPhone production. The company assembled $14 billion worth of iPhones in India in fiscal 2024, accounting for 14% of its global iPhone production, the Economic Survey 2023-2024, released on July 22, revealed. The effort includes building a network of local suppliers to reduce reliance on Chinese suppliers.
JP Morgan analysts estimated in 2022 that a quarter of all Apple products would be manufactured outside China by 2025, up from 5% at that time.
Plans for an iPad made in India
Apple may also resume preparations to manufacture its iPads in India through Foxconn, encouraged by the government’s efforts to attract more supply chains. The move comes after its previous attempt to partner with China’s BYD to manufacture iPads in India fell through due to government restrictions driven by geopolitical concerns.
India wants Apple to manufacture its entire product lineup locally in the coming years, including laptops and desktops.
Moneycontrol reported on July 8 that the company is making additional efforts to ramp up production of components for AirPods wireless charging cases through US-based contract manufacturer Jabil in Pune, and may also do the same with Foxconn.
Apple plans to start production of AirPods in India early next year.
Prices of iPhone models drop after tariff cut
Apple has also cut prices of its iPhone models in India by 3-4%. The move comes after India reduced basic customs duty on mobile phones from 20% to 15% in its annual budget earlier this week.
Price reductions vary from ₹300 for models like iPhone 13, 14 and 15 up to ₹6,000 for the iPhone 15 Pro and Pro Max. The iPhone SE has become cheaper by ₹2,300. This is the first time that Apple has cut prices of the current-generation Pro models in India.
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