Apple iPhone 16 Pro will be made in India
Apple is reportedly gearing up to manufacture its iPhone 16 Pro and Pro Max models in India, marking a significant shift in the company's production strategy. Until now, the tech giant's highest-specification models have not been included in its steadily increasing Indian production line. This move signifies a notable change in Apple's manufacturing pattern for its premium devices.
Strategy to deepen manufacturing capabilities
Sources familiar with the matter told Moneycontrol that Apple has been contemplating the production of Pro models in India for "the last couple of years." This decision is part of the company's strategy to "deepen its manufacturing capabilities with partners in India." The tech giant aims to make the India-assembled iPhone 16 Pro models available in the country post-launch.
Foxconn facility to initiate production
The Foxconn facility in Sriperumbudur, Tamil Nadu, is slated to begin the "new product introduction" (NPI) process for the iPhone 16 Pro and Pro Max models. This facility has previously been linked with Foxconn's efforts to expand iPad production within India. The NPI process is expected to kick off over the summer, marking a significant step in Apple's manufacturing expansion in India.
India-made 16 Pro models expected within fiscal year
While the production of the Pro models is anticipated to commence before year-end, they will not be ready for launch. Mass production is not expected until after the iPhone 16's launch expected around September this year. Initially, China-assembled iPhone 16 Pro and Pro Max models will likely be involved in the launch, but India-made variants are projected to be available within the fiscal year.
Apple's revenue in India could surge
The production shift is projected to significantly enhance Apple's earnings in India. As of July, the company's revenue in the country had grown by 33% over a 12-month period ending in March, resulting in an increase from $6 billion to $8 billion.
Indian government reduces import rate, benefiting the iPhone maker
In a related development, the Indian government has reduced basic customs duty on mobile phones from 20% to 15% as part of Budget 2024. This reduction not only lowers the cost of importing iPhones into India but also reduces the cost of components used for assembly within the country, thereby making the iPhones slightly cheaper. Apple recently announced a 3-4% price cut on all iPhone models in India.
