In a significant development for the manufacturing sector in India, Apple is poised to produce its inaugural iPhone 17 in the country, signaling a departure from its traditional manufacturing hub in China. Noted Apple analyst Ming-Chi Kuo has shared this noteworthy insight, asserting that the iPhone 17, slated for a 2025 release, is expected to commence production in India in 2024.
Apple iPhone 17 Series to Manufacture in India
In a Medium post, Ming-Chi Kuo underscored the groundbreaking nature of this move, as it marks the very first instance of Apple initiating the development of a new iPhone model beyond the confines of China. The decision to select the standard iPhone model for this endeavor is grounded in its comparatively lower complexity in terms of design development, thereby mitigating potential “design risk.”
The shift in iPhone production to India is anticipated to have a substantial impact. Shipments of iPhones from India, currently constituting approximately 12-14% in 2023, are projected to account for a noteworthy 20-25% of iPhone production capacity in 2024.
In parallel, Kuo forecasts a decline in production at Foxconn’s Zhengzhou and Taiyuan facilities by approximately 35-40% and 75-80%, respectively, in 2024. Foxconn, a Taiwan-based conglomerate, holds the lion’s share, about 75-80%, of the production capacity used for manufacturing iPhones in India.
Notably, the Tata Group is gearing up to manufacture India’s very first domestically produced iPhone, following the approval of Wistron Corp’s assembly plant sale near Bengaluru.
Furthermore, Kuo asserts that Apple is actively working to fortify its partnership with the Indian government. This strategic alignment is expected to yield substantial benefits for the company, particularly in terms of future iPhone and product sales in India. It is a pivotal move that is poised to drive growth for the Cupertino-based tech giant over the course of the next decade.
This move comes in the wake of Apple’s growing commitment to manufacturing in India, exemplified by its various manufacturing partners commencing the production of the latest iPhone 15 series in the country. If the latest report proves accurate, it signifies Apple’s increasing reliance on its Indian manufacturing partners and its growing focus on the Indian market.
