Top 3 Key Points:
- Apple will begin producing iPhone 16 Pro models in India just weeks after the global launch.
- Apple’s efforts to diversify away from China are progressing with plans for all iPhones sold in India to be locally made by year’s end.
- Foxconn, along with other partners, is rapidly preparing to manufacture the iPhone 16 Pro and Pro Max in India.
Apple is making significant strides in reducing its reliance on China for iPhone manufacturing, with the iPhone 16 launch marking a pivotal moment in this strategy. For the first time, both the iPhone 16 Pro and Pro Max models will be manufactured in India within weeks of their global release—a milestone that underscores the company’s ongoing effort to diversify its production base.
Diversifying iPhone Production
The pandemic highlighted the risks of having a vast majority of iPhones—up to 80%—produced in a single location in China. Recognizing the need for a more resilient supply chain, Apple has been working to expand its manufacturing footprint, with India emerging as the most promising alternative. While there have been ambitious projections, such as the goal of producing 25% of all iPhones in India by 2025 and potentially reaching 50% by 2027, tangible progress has been slow.
Ambitious Plans for iPhone 16
According to reports, about one in seven iPhones is currently made in India. However, the production of high-end models like the iPhone 16 Pro has lagged due to the complex manufacturing processes involved. This year, that gap is expected to close. Foxconn, Apple’s key manufacturing partner, is set to begin assembling the iPhone 16 Pro and Pro Max in India within weeks of their global launch this fall. The company has already started training thousands of workers at its factory in Tamil Nadu to meet this ambitious timeline. Other partners, including Pegatron and the Tata Group, are also preparing to produce these premium models in India.
Local Production for Local Sales
Another major goal for Apple is to have all iPhones sold in India made locally. This has been a challenge due to the need to import flagship models from China, which incurs additional duties and makes the devices more expensive for Indian consumers. However, by the end of this year, Apple aims to manufacture all iPhones sold in India within the country, a move that could help lower prices and boost sales in this important market.
In summary, Apple’s iPhone 16 launch is not just about new technology—it’s about a significant shift in the company’s global manufacturing strategy, with India playing a crucial role in the future of iPhone production.
