Apple Expanding Local Production: A New Chapter for Apple in India
In a strategic effort to diversify its manufacturing base and reduce dependency on China, Apple is set to begin producing its iPhone 16 Pro and Pro Max models in India this fiscal year. The manufacturing operations will be overseen by Foxconn, Apple’s primary partner in production.
Key Facility: Foxconn’s Sriperumbudur Plant
Historically, Apple’s Indian production has been limited to non-Pro models. This year, the tech giant plans a significant shift by including the Pro and Pro Max versions of the iPhone 16 series in its local manufacturing portfolio. Foxconn’s Sriperumbudur facility in Tamil Nadu will initiate the ‘new product introduction’ (NPI) process for these models, transitioning to full-scale production following the iPhone 16’s launch. Foxconn’s selection for this critical role highlights its robust capabilities and seamless integration within Apple’s global supply chain.
Strengthening India’s Manufacturing Landscape
This move is part of Apple’s larger strategy to expand its operations in India. Last fiscal year, Apple manufactured iPhones worth $14 billion in India, representing 14% of its global production. The company’s influence in the Indian smartphone market is growing steadily, with a 6% market share and a 23% revenue share in 2023, surpassing Samsung.
Apple shipped over 10 million iPhones in India in 2023, up from 6 million units in 2022. With the iPhone 16 series launch, Apple anticipates even higher demand, preparing 90 million units for 2024—a 10% increase compared to the iPhone 15 series.
Broader Manufacturing Ambitions
Apple’s expansion in India extends beyond iPhones. The company plans to manufacture iPads and start AirPods production early next year through Foxconn. These initiatives align with the Indian government’s efforts to attract more global supply chains.
Additionally, Apple collaborates with Tata Electronics, which has acquired Wistron’s operations and is set to take over Pegatron’s India operations. This includes an existing iPhone manufacturing plant near Chennai and another facility under construction.
Future Vision: Increasing Production Share in India
Apple aims to increase its global iPhone production share in India to 25% over the next 3-4 years, up from the current 14%. This strategic shift underscores Apple’s commitment to strengthening its production capabilities and market presence in India.
