Apple plans 4 more retail stores in India, officially begins making iPhone 16 Pro, Pro Max

Apple Store

Four more Apple stores are on the cards in India as the US-based tech giant strategically steps up its investments in the country that is increasingly gathering importance because of a booming market for Apple products.

Apple chose Delhi and Mumbai as the first two Apple stores in April 2023, and now it is homing in on Bengaluru, Pune, and Delhi-NCR for the next phase of retail expansion, which may see one more outlet in Mumbai.

Bullish on India as its manufacturing hub in the making, the company also confirmed the production of the entire iPhone 16 lineup from the country, including the Pro and Pro Max models. The decision underscores India's critical role in Apple's global operations as well as the company's growing focus on diversifying its supply chain and tapping into India's skilled workforce.

"Our stores are incredible places to experience the magic of Apple, and it's been wonderful to deepen our connection with our customers in India. We're thrilled to build our teams as we plan to open more stores in India, because we're inspired by the creativity and passion of our customers across this country," said Deirdre O'Brien, Apple's senior vice-president of retail. "We can't wait for them to have even more opportunities to discover and shop for our amazing products and services, and connect with our extraordinary, knowledgeable team members."

Analysts suggested that Apple's retail expansion was prompted by the success of its Delhi and Mumbai retail outlets, which have made significant contribution to the company's overall sales in the country.

"With Delhi and Mumbai contributing more than one-fifth of Apple's business, more than one store was required in these big metros. This retail footprint expansion will further strengthen Apple's positioning in the premium device market in India. Since Apple stores are famed for providing unparalleled product and service experience," said Navkendar Singh, associate vice-president of IDC India.

Pro strategy 

Apple started manufacturing the iPhone 16 Pro and iPhone 16 Pro Max in India through its contract manufacturing partners, Foxconn and Pegatron. The made-in-India iPhone 16 Pro and Pro Max will soon be available for local customers and for export to select countries worldwide.

Moneycontrol was the first to report on Apple's plan to expand manufacturing in India by starting production of the iPhone 16 Pro and Pro Max models. Apple had confirmed the development separately in a statement to Moneycontrol: "Apple is now manufacturing the entire iPhone 16 lineup, including iPhone 16 Pro and iPhone 16 Pro Max, in India. "

Sources said Foxconn is making iPhone 16, 16 Plus, and Pro Max models, while Pegatron is making iPhone 16, 16 Plus, and 16 Pro models. Tata Electronics is making the iPhone 16 base model.

Apple began manufacturing iPhones in India in 2017 and is also making older generation iPhones, including the iPhone 15 and iPhone 15 Plus, iPhone 14 and iPhone 14 Plus, and iPhone 13.

"Assembly of iPhone Pro lineup in India marks a significant milestone for both India and Apple. Now, it is just a matter of scale. The question is: how quickly can Apple ramp up production to meet both the growing domestic demand and a substantial portion of export demand for these premium devices?" Singh said.

IDC estimates that Apple is expected to ship 12 to 12.5 million iPhones in India in 2024. This is around 25 percent growth for Apple over 2023.

"Apple's smartphone average selling price (ASP) is almost three times the market average. And with an expanded retail footprint, this ASP will see a possible boost as consumers experience the famed Apple retail set-up and Apple Genius staff known for deep product knowledge," Singh said.

Over the years, the company has expanded its workforce in India, reaching over 3,000 employees to support various functions in the country. The company's production-related work with Indian suppliers such as Foxconn, Pegatron, Tata Electronics and other component makers also supports hundreds of thousands of jobs nationwide.

Beyond iPhones

Apple's expanding iPhone production in India aligns with its diversification strategy from China. Last year, the company shifted part of its iPad production to Vietnam, but the Indian government is now urging Apple to reconsider assembling iPads in India, as reported by Moneycontrol on July 8.

Additionally, the Indian government is encouraging Apple to manufacture its entire product range locally, including AirPods, MacBooks, and iMacs, in the coming years. Beyond the central government's efforts, states like Karnataka and Tamil Nadu are actively vying to attract Apple's future investments through existing and new component partners to boost local manufacturing.

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 Cupertino-based company assembled $14 billion worth of iPhones in India in FY24, constituting 14 percent of its global iPhone production, as per the Economic Survey 2023-2024, tabled on July 22. This effort includes building a network of local vendors to reduce dependence on Chinese suppliers.