Some of Apple's iPhone 16 Pro models will be assembled outside China for the first time. Later this year, these premium devices will be put together in India, marking a significant shift in Apple's production strategy.
Sources familiar with the plan have informed Bloomberg that Foxconn, a major supplier for Apple, is set to start assembling the iPhone 16 Pro models in India within weeks of their global release. This marks a notable change, as Foxconn traditionally assembles flagship iPhones in China.
Training for this massive undertaking is already underway, with thousands of employees at the Foxconn factory in Tamil Nadu, southern India, preparing for the task. Other suppliers, including Pegatron and Tata Group, are expected to follow suit, with assembly of the iPhone 16 Pro models expected to ramp up in the coming weeks or months.
A new chapter for iPhone assembly
While Apple has been assembling older iPhone models in India for several years, this is the first time the more advanced Pro models will be manufactured outside China. This development is a significant milestone for both Apple and India, reflecting the tech giant's ongoing efforts to diversify its supply chain.
The move to India has been in the works for years. Reports suggest that Foxconn has invested a staggering US$1 billion in the country to support iPhone assembly. Analysts at J.P. Morgan estimates that by 2025, India could be responsible for producing a quarter of all iPhones.
However, this shift hasn't been without its challenges, and the Financial Times reported difficulties scaling up iPhone production in India early last year. One in every two components from the production line failed to meet Apple's strict quality standards. Additionally, there was an apparent lack of urgency among Indian suppliers to meet deadlines, a contrast to China's efficiency.
Overcoming challenges and looking ahead
Despite these initial setbacks, Apple has overcome many of the challenges. An anonymous Indian government official told BQ Prime that iPhone production in India has already surpassed US$7 billion. Moreover, Apple is expected to boost production in the country to over US$40 billion in the next five years.
Earlier this year, Bloomberg revealed that one in every seven iPhones is now being built in India. This shift is worth an estimated US$14 billion in iPhone production in the country, highlighting the growing importance of India in Apple's global manufacturing strategy.
This development brings India closer to its goal of becoming a major manufacturing hub for Apple. If the assembly process for the iPhone 16 Pro models goes smoothly, India is well-positioned to secure more orders from Apple, further reducing the tech giant's reliance on China.
Consumers in India are also set to benefit from this shift. By the end of the year, all iPhones sold in the country will be locally assembled. This means these devices could be more affordable for Indian consumers as they won't be subject to import taxes, making the latest iPhones more accessible to a wider audience.
