Apple Inc. is shifting its manufacturing strategy by producing its high-end iPhone Pro models in India for the first time this year. This decision, highlighted in a Bloomberg report, could potentially affect the pricing of these premium phones in the Indian market. Apple’s partner, Foxconn, will assemble the new iPhone 16 Pro and Pro Max models at its Tamil Nadu facility.
Foxconn plans to start production just weeks after the global launch this autumn. The company is currently training thousands of workers to meet the demanding timeline. By manufacturing its most expensive iPhones in India, Apple is emphasizing the country’s increasing importance in its global operations.
Since 2021, Apple has actively expanded its manufacturing presence in India, driven by financial incentives from Prime Minister Narendra Modi’s government to attract high-tech production. Local manufacturing could offer Indian consumers the benefit of lower prices, as imported iPhones currently carry high import taxes. By producing locally, Apple might reduce prices by up to 10%, according to the report.
Despite the potential for reduced costs, the iPhone 16 Pro and Pro Max will likely remain more expensive in India than in other countries. High costs for importing advanced components and additional local taxes will contribute to this price disparity.
While Apple will manufacture these premium models in India, the majority of the production will target export markets in Europe, the Middle East, and the US. Although current demand for these high-end models is lower in India, it may increase during the upcoming festive season.
FILE PHOTO: Apple iPhones are seen inside India’s first Apple retail store during a media preview, a day ahead of its launch in Mumbai, India, April 17, 2023. REUTERS/Francis Mascarenhas/File Photo
India is becoming a crucial market for Apple, with annual sales nearing a record $8 billion. Analysts predict that this could grow to $33 billion by 2030 as more Indian consumers purchase high-end products. Apple’s decision to manufacture iPhone Pro models in India reflects its commitment to the country and its confidence in India’s potential as both a manufacturing hub and a major market.
