Apple to Manufacture iPhone 16 Pro Models in India

In a strategic move to enhance its manufacturing capabilities and reduce reliance on China, Apple is set to produce the flagship iPhone 16 Pro and Pro Max models in India this year. This development highlights Apple's commitment to expanding its production footprint in one of its key international markets.

Production Plans

According to recent reports, Apple will collaborate with its partner Foxconn to assemble the iPhone 16 Pro models at its Sriperumbudur, Tamil Nadu facility. This marks a significant milestone as it will be the first time Apple’s high-end Pro models are manufactured in India. Last year, Apple produced the iPhone 15 in India, with the iPhone 15 Pro and Pro Max initially imported and later the iPhone 15 Plus produced locally by Pegatron.

For the upcoming iPhone 16 series, while the initial batch of Pro models will be imported, Foxconn is expected to commence local production shortly after the launch. This shift is partially driven by the Indian government's recent reduction in the basic customs duty (BCD) on mobile phones from 20% to 15%, which is anticipated to lower Apple's costs.

Market Impact

Apple’s expansion into local production for the iPhone 16 Pro models is expected to impact its market presence in India positively. The company forecasts a 20% increase in iPhone shipments in the country this year, supported by domestic manufacturing and strong distribution channels. In fiscal year 2024, Apple experienced a 33% rise in sales, reaching approximately $8 billion, reflecting a growing demand among Indian consumers, including many first-time buyers.

Future Plans

In addition to ramping up iPhone production, Apple plans to further invest in local manufacturing by producing components for other products, such as AirPods. This move aligns with Apple’s broader strategy of diversifying its supply chain and strengthening its presence in the Indian market.

With the iPhone 16 series set to launch in September, Apple’s efforts to increase local production in India support its market expansion goals and underscore its investment in the country’s growing tech ecosystem.