Apple is all set to expand its manufacturing footprint in India with the upcoming iPhone 16 Pro models.
According to recent reports, the tech giant will begin assembling both the iPhone 16 Pro and iPhone 16 Pro Max in India shortly after their global launch this fall. This means that it's also slowly reducing dependence on China, one of the largest iPhone markets globally.
Apple to Diversify iPhone Production
For years, Apple has recognized the risks associated with its heavy dependence on China as a manufacturing hub. The COVID-19 pandemic highlighted these vulnerabilities, with up to 80% of the world's iPhone production concentrated in a single facility. This realization pushed Apple to accelerate its plans to diversify production and reduce the risks associated with this centralization.
India has long been identified as Apple's primary alternative manufacturing base. Ambitious projections have suggested that a quarter of all iPhones could be made in India by 2025, with this figure potentially rising to half by 2027. However, until now, there has been limited evidence of these predictions coming to fruition, particularly when it comes to the production of flagship models.
India as an iPhone Production Hub
Earlier this year, Bloomberg reported that approximately one in seven iPhones are now manufactured in India. However, the production of flagship models, which require more advanced manufacturing processes, has consistently lagged behind.
This year marks a turning point. The same report indicates that production of the iPhone 16 Pro and Pro Max will commence in India just weeks after the official launch of the new line-up.
Foxconn Technology Group, Apple's key partner, has already begun training thousands of workers at its factory in Tamil Nadu, southern India, to assemble the new flagship devices as close to the global launch as possible. There are also indications that Apple's other partners in India, including Pegatron and the Tata Group, may soon start manufacturing the Pro versions.
Manufacturing All iPhones Sold in India Locally
Another critical objective for Apple has been to ensure that all iPhones sold in India are manufactured domestically. Until now, this has not been feasible, forcing the company to import flagship models from China and pay hefty import duties, according to 9to5Mac. These additional costs have made iPhones disproportionately expensive for Indian consumers, even after a recent reduction in import taxes and subsequent price cuts.
According to the latest Bloomberg report, the Cupertino titan is on track to achieve this goal by the end of the year, with all iPhones sold in India expected to be locally manufactured. This shift not only reduces costs for the company but also aligns with the Indian government's push for local manufacturing under its "Make in India" initiative.
Apple's decision to ramp up iPhone 16 Pro production in India is a surprising move that it made for its manufacturing strategy. By diversifying its production base, Apple is mitigating the risks associated with its reliance on China while also capitalizing on India's growing importance as a global manufacturing hub.
Ahead of iPhone 16's launch, we could also see other iPhone models including the budget-friendly iPhone SE 4 which will allegedly have an A17 Bionic processor.
While the countdown for the iPhone 16 lineup is happening, several reports claim that the iPhone 16 Plus could be the last one for its variant. The rumored replacement will be the iPhone 17 Slim which could hit the shelves by 2026.
