Apple Inc. is set to manufacture the iPhone 16 Pro and Pro Max models in India, a significant milestone in its strategy to diversify production beyond China. This move, facilitated through its partner Foxconn, underscores Apple’s commitment to deepening its manufacturing capabilities in India.
Expansion of Local Production
Last year, Apple made the iPhone 15 models available to Indian customers on the first day of global sales, marking a notable shift in its production strategy. The local production of the iPhone 15 and iPhone 15 Plus models by Pegatron highlighted Apple’s increasing reliance on Indian manufacturing capabilities.
According to sources familiar with the matter, Foxconn’s facility in Sriperumbudur, Tamil Nadu, will soon start the new product introduction process for the iPhone 16 Pro models. Mass production will commence once the phone is officially launched. Initially, the Pro and Pro Max models may be imported, but locally assembled units will be available within this fiscal year.
Boosting Production Amid High Demand
Apple anticipates high demand for its iPhone 16 series, which is expected to launch in September. The company plans to produce 90 million units of iPhone 16 devices in 2024, a 10% increase from the iPhone 15 series. This ambitious target reflects Apple’s confidence in the new models and its strategic push to enhance production efficiency.
In 2023, Apple shipped over 10 million iPhones in India, up from 6 million in 2022, securing the top revenue position with a 23% share of the smartphone revenue market. This growth highlights the increasing importance of the Indian market for Apple.
Ramping Up Efforts to Diversify Supply Chain
Apple’s decision to manufacture the iPhone 16 Pro models in India is part of a broader strategy to diversify its supply chain and reduce dependence on Chinese suppliers. The company aims to manufacture a quarter of all its iPhones in India over the next three to four years, up from the current 14%.
In addition to iPhones, Apple is also exploring the possibility of producing other products in India. Plans to manufacture iPads in India through Foxconn are being revisited, encouraged by the Indian government’s push to attract more supply chains.
Apple’s decision to produce the iPhone 16 Pro and Pro Max models in India marks a significant step in its strategy to diversify production and strengthen its manufacturing base outside China. With high demand anticipated for the new models, this move not only enhances Apple’s production capabilities but also underscores the growing importance of the Indian market in the global tech landscape.
