Apple Expands Production to India with New iPhone Pro Models

In a landmark development, Apple expands iPhone production will start producing its most expensive iPhone models, the iPhone 16 Pro and Pro Max, in India this year. This marks the first time Apple will assemble its high-end devices in the country, highlighting a significant milestone for both the tech giant and India’s manufacturing sector.

Foxconn Takes the Lead

Key partner Foxconn Technology Group will soon start assembling these premier devices after their global release this fall. Sources familiar with the matter, who spoke on condition of anonymity, revealed that Foxconn has already begun training thousands of workers at its Tamil Nadu factory. The training aims to ensure that the iPhone 16 Pro and Pro Max will be manufactured near their global launch date.

Foxconn’s early training for iPhone 16 Pro assembly indicates a well-prepared, timely launch, according to wsj subscription black friday.

Strategic Expansion in India

This move is part of Apple’s broader strategy to diversify its production footprint. Apple still manufactures most iPhones in China. However, the company is turning to India to mitigate geopolitical risks. These risks arise from tensions between Beijing and Washington. Apple’s efforts in India gained momentum in 2021. Prime Minister Modi supported this momentum with financial incentives.

Impact on Production and Pricing

During the fiscal year ending March 2024, Apple assembled iPhones worth $14 billion in India, making up about 14% of global output. The standard iPhone 16, manufactured in India, is set to launch on the same day as its global debut. Apple expands iPhone production with its Indian partners, including Pegatron Corp.’s local unit and the Tata Group. These partners might soon start producing the Pro models, which feature advanced components such as larger batteries and sophisticated cameras. The Pro models are also known for their titanium bodies, enhancing their durability and appeal.

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Market Dynamics and Future Prospects

India’s expanding middle class is now a key market for Apple. The rising consumer base sees Apple devices as status symbols. CEO Tim Cook’s visit last year to open two Apple stores underscored the company’s dedication to India. Annual sales in the country are nearing $8 billion.

By year-end, locally produced iPhones in India should meet domestic demand, potentially lowering Pro model prices by up to 10% compared to imported devices with import duties. However, high component costs and local taxes will likely keep iPhone 16 Pro and Pro Max prices in India higher than in some international markets.

Looking Ahead

Apple plans to export most of the India-made Pro and Pro Max models to Europe, the Middle East, and the US due to lower domestic demand for these premium versions. The upcoming holiday season may drive increased sales, and the reduction in price disparity could further encourage local purchases. According to Canalys analyst Sanyam Chaurasia, financing options during festive periods could also boost domestic sales.

Despite recent sluggish sales, the iPhone still drives about half of Apple’s global revenue. The new iPhone 16 series will feature upgraded cameras, processors, and displays. These improvements will continue to boost the brand’s market performance.

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