Apple Inc. is set to produce its premium iPhone Pro and Pro Max models in India for the first time this year, marking a significant milestone for both the company and the country’s manufacturing sector. Foxconn Technology Group, a key Apple partner, will begin assembling these high-end devices within weeks of their global launch this fall, according to sources.
This development is part of Apple’s broader push to expand its manufacturing presence in India, a strategy that gained momentum in 2021, supported by financial incentives from Prime Minister Narendra Modi’s government. While Apple still manufactures the majority of its iPhones in China, it is gradually diversifying production to reduce risks associated with geopolitical tensions between China and the U.S.
In the fiscal year ending in March 2024, Apple assembled $14 billion worth of iPhones in India, accounting for up to 14% of its global output. Like last year, the India-made standard iPhone 16 is expected to be available on the same day as its global release. Other partners in India, including Pegatron Corp. and Tata Group, may also begin producing the Pro models soon.
India, with its growing and aspirational middle class, is becoming an increasingly important market for Apple. Locally produced iPhones could satisfy domestic demand by the end of the year and may result in a price reduction of up to 10% for the Pro models due to lower import duties. However, expensive component imports and local taxes will keep Indian prices higher than in some other markets.
Although the majority of the India-made Pro and Pro Max devices will be exported to Europe, the Middle East, and the U.S., the upcoming festive season could drive local sales. As Apple continues to face challenges in global iPhone sales, the new iPhone 16 series, with improved cameras, processors, and displays, is expected to play a crucial role in boosting revenue.
