Apple Inc. will assemble the top-of-the-line Pro and Pro Max models of its upcoming iPhone 16 series in India for the first time through its partner Foxconn, bolstering its manufacturing presence in the country as part of a plan to diversify production beyond China, people familiar with the matter said.
"Every year, Apple seeks to deepen its manufacturing capabilities with partners in India. Production of Pro models is something that has been under consideration for the last couple of years. This year, Apple will manufacture the Pro and Pro Max models in India to make sure the India-assembled iPhone 16 Pro models are available in the country after the launch," a source familiar with the matter told Moneycontrol.
Last year, Apple made iPhone 15 units of India-built iPhones available to Indian customers on the first day of global sales. It not only made the base iPhone 15 models in India, but later followed up with the local production of the iPhone 15 Plus by Pegatron.
Sources said Foxconn's facility in Sriperumbudur, Tamil Nadu, will soon start the 'new product introduction' (NPI) process for the pro models of iPhone 16 and will enter mass production stage once the phone is launched.
The source further said that Foxconn typically receives 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, it is likely that the Pro and Pro Max models will be imported. But, Apple will make India-made Pro models available within this fiscal year, similar to what it did with Apple 15 Plus," another person privy to the development said.
Queries sent to Apple and Foxconn didn't elicit any response.
According to Counterpoint, Apple has 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 market share. Apple shipped over 10 million iPhones in 2023 in India, up from 6 million in 2022, securing the top revenue position for the year, pipping Samsung.
Apple anticipates high demand for its iPhone 16 series, which is expected to launch in September. The company relies on AI services to boost interest in its new lineup following a challenging 2023. The Cupertino-based company is preparing 90 million units of iPhone 16 devices for 2024 alone, which is 10 percent higher than the Phone 15 series.
Notably, Apple Chief Operating Officer Jeff Williams visited China's manufacturing hub, Shenzhen, to discuss the supply chain ahead of the iPhone 16 series launch. Apple is currently ramping up production for its iPhone 16 series devices, as its contractors in China, including Foxconn's plant in Shenzhen, are recruiting workers, the South China Morning Post reported on July 24.
Apple has aggressively increased production of its flagship iPhone devices in India through Foxconn and Tata Electronics. Tata, which acquired Wistron operations, is acquiring Pegatron's India operations, including an iPhone manufacturing plant near Chennai and another under-construction unit.
Apple aims to expand its production base in the country, targeting to manufacture a quarter of all its iPhones in India over the next 3–4 years, up from 14 percent of their total iPhone production. The company assembled $14 billion worth of iPhones in India during FY24, constituting 14 percent of its global iPhone production, the Economic Survey 2023-2024, tabled on July 22, revealed. This effort includes building a network of local vendors to reduce dependence on Chinese suppliers.
JP Morgan analysts estimated in 2022 that a quarter of all Apple products would be made outside China by 2025, up from 5 percent at that time.
Plans for Made-in-India iPad
Apple may also resume preparations for manufacturing its iPads in India through Foxconn, encouraged by the government's push to attract more supply chains. The development comes after its previous attempt to partner with China's BYD to make iPads in India hit a roadblock due to government restrictions led by geopolitical concerns.
READ MORE: Apple may revive plans to make iPads in India, eyes Pune for AirPod cases
India wants Apple to make its entire product range locally in the coming years, including laptops and desktops.
Moneycontrol reported on July 8 that the company is making further efforts to increase the production of components for AirPod wireless charging cases through US-based contract manufacturer Jabil in Pune, and it could also do the same with Foxconn.
Apple plans to start production of AirPods in India early next year.
Price cut for iPhone models after duty reduction
Apple has separately reduced the prices of its iPhone models in India by 3-4 percent. The decision comes after India reduced basic customs duty on mobile phones from 20% to 15% in its annual budget earlier this week.
Price reductions range from Rs 300 for models like the iPhone 13, 14, and 15 to up to 6,000 rupees for the iPhone 15 Pro and Pro Max. iPhone SE has gotten cheaper by Rs 2300. This is the first time Apple has lowered prices on current-generation Pro models in India.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!