Apple is planning to manufacture its premium iPhone 16 Pro and Pro Max models in India as part of a deliberate expansion of its worldwide manufacturing presence, according to Bloomberg News. Foxconn Technology Group, the tech giant's primary manufacturing partner, will start constructing these flagship gadgets at a factory in Tamil Nadu just weeks after their global release this autumn.
The iPhone maker has already begun training thousands of workers at Foxconn's southern India site, with the intention of closely synchronising the production timeline with the global release of these high-end smartphones.
Apple's choice to make its Pro models in India builds on the company's previous accomplishments in the nation, where it began manufacturing iPhones in 2021 with the iPhone SE. Apple progressively extended its Indian production over the years, beginning with non-Pro models and progressing to the iPhone 15 and iPhone 15 Plus. The decision to manufacture Pro models in India underlines Apple's desire to considerably increase the share of Indian-made iPhones in its global output, with a target of 25 per cent during the next three to four years.
During the fiscal year ending March 2024, Apple assembled USD 14 billion worth of iPhones in India, accounting for nearly 14 per cent of its global output. This shift in manufacturing strategy coincides with ongoing geopolitical tensions and supply chain problems, pushing Apple to minimise its reliance on China for production.
While Foxconn will produce the Pro models, Apple's other Indian partners, including as Pegatron and Tata Group, may also manufacture similar high-end devices in the future. The majority of India's iPhone 16 Pro and Pro Max units are expected to be exported to key regions such as Europe, the Middle East and the United States.
Despite its growth into India, Apple continues to manufacture the vast majority of its iPhones in China. The company has various hurdles in the Indian market, including the need to import pricey components and deal with local taxes. These variables may result in higher iPhone 16 Pro and Pro Max prices in India than in other outside countries.
Apple's move to increase production in India is part of a larger drive to diversify its manufacturing base amid global supply chain challenges. The corporation has continuously increased its investments in India, a market with both cost advantages and huge growth potential. With ambitions to manufacture 25 per cent of its iPhones in India over the next five years, Apple is positioning itself to capitalise on the country's massive manufacturing capabilities while also meeting the growing demand for luxury handsets in international markets.
As Apple strengthens its manufacturing links with India, the country is expected to play an increasingly vital part in the company's worldwide supply chain. The involvement of local companies such as Tata Group in iPhone production underscores India's potential to become a significant hub for high-end technology manufacturing. However, Apple has enormous problems in negotiating India's regulatory environment and managing the expenses associated with importing components as it expands its operations in the region.
