Apple is reportedly expanding its manufacturing footprint by producing the iPhone 16 Pro and iPhone 16 Pro Max models in India.
Somehow, the Cupertino tech giant has learned to diversify the manufacturing hubs for the higher-end iPhone models in another country other than China, which is a known powerhouse in iP{hone assembly.
Foxconn Takes the Lead
According to Money Control, Apple's manufacturing partner, Foxconn, will spearhead the production of these high-end iPhones at its Sriperumbudur facility in Tamil Nadu. This move comes after the successful production of iPhone 15 models in India, demonstrating the country's growing capabilities in assembling complex electronic devices.
"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 Apple's plans told Moneycontrol.
Related Article: Apple's Annual Sales in India Reach Almost $8 Billion, Revenue Jumps About 33% in Just 12 Months
Reducing Reliance on China
The decision to manufacture Pro models in India aligns with Apple's broader strategy to diversify its supply chain. The company aims to mitigate risks associated with overreliance on a single country, especially amid ongoing geopolitical tensions and supply chain disruptions.
Previous production challenges, such as COVID-19-related lockdowns and factory riots in China, have underscored the need for a more geographically dispersed manufacturing base. By expanding production to India, Apple seeks to enhance supply chain resilience and ensure uninterrupted iPhone availability, per MacRumors.
India's Growing Role in Electronics Manufacturing
The Indian government has been actively incentivizing domestic manufacturing to reduce reliance on imports. Apple's investment in India is a testament to the country's growing capabilities in the electronics sector.
As the world's second-largest smartphone market, India offers a vast consumer base and a skilled workforce, making it an attractive destination for global tech companies.
While China will continue to play a crucial role in Apple's supply chain, the gradual shift towards India and other countries signifies a strategic realignment aimed at mitigating risks and tapping into new growth opportunities.
In BGR's previous report, it was mentioned that Apple dreamt of producing one in every four iPhones in India two years from now.
In other news, TSMC saw success in its Q2 2024 financial results. Although it achieved massive profits from its improved net sales, the company acknowledged that there's still a lot of room for growth and improvement.
With this, the semiconductor manufacturer will consider a price hike among its customers. It will also account for the rising manufacturing costs so it could give better tech development. With this plan, we expect a rollout of more expensive devices from TSMC soon.