Apple Shifts Gears: iPhone 16 Pro Models to be Manufactured in India, Reducing China Dependency
Apple is marking a significant milestone this year in its quest to diversify its manufacturing efforts and reduce its heavy reliance on China. According to a recent report, the iPhone 16 Pro models will be manufactured in India shortly after their launch. This is a remarkable achievement for the company, which has historically depended on China for the majority of its iPhone production.
Diversifying iPhone Production
The necessity for Apple to mitigate its reliance on China as a central manufacturing hub has been evident for many years. The COVID-19 pandemic underscored these risks, demonstrating the vulnerabilities associated with having approximately 80% of global iPhone production in one place. As a result, Apple has been incrementally shifting some of its manufacturing to India, targeting it as a secondary production site.
While past projections suggested that a quarter of all iPhones could be produced in India by 2025 and as much as half by 2027, these ambitious targets have shown limited tangible progress. Yet, Apple seems poised to accelerate this transition, driven by both logistical imperatives and geopolitical factors.
Ambitious Plans for iPhone 16 Launch
In April, Bloomberg noted that around one in seven iPhones were being manufactured in India, though flagship models lagged behind, requiring more sophisticated manufacturing techniques. This year, there's a pivotal shift on the horizon. Foxconn Technology Group, a key Apple partner, is set to start producing iPhone 16 Pro and Pro Max models in India just weeks after their global release.
The production effort in India will be substantial, with Foxconn training thousands of workers at its factory in Tamil Nadu. Additionally, other local partners like Pegatron and the Tata Group may also begin assembling the Pro versions soon. This marks a decisive step in Apple’s strategy to balance its production landscape.
Another Key Goal to Be Met This Year
Apple has also aimed for all iPhones sold in India to be manufactured within the country, a goal they have yet to fully achieve. Import duties on flagship models, despite recent tax reductions and price cuts, have kept iPhones somewhat expensive for Indian consumers.
However, Bloomberg reports that by the end of this year, all iPhones sold in India will be locally produced. This move is expected to streamline costs and potentially lower prices, making iPhones more accessible to the Indian market.
The iPhone 16's expanded production in India represents a significant pivot in Apple's manufacturing and supply chain strategy. As global dynamics evolve, Apple's efforts to diversify production sites not only mitigate risks but also foster economic collaborations in key regions like India.