Apple is gearing up for a groundbreaking development as it prepares to start manufacturing the iPhone 17 in India, and it may come to fruition as early as the second half of 2024. This move, spearheaded by prominent Apple vendors Foxconn, Pegatron, and the Tata Group, signifies a strategic shift in Apple’s global manufacturing landscape.
India: Pioneering iPhone 17 Production Notably, renowned analyst Ming-Chi Kuo predicts that India is positioned to become the first country globally to commence the production of the iPhone 17. According to Kuo, this ambitious endeavor is scheduled to materialize before the rest of the world and is expected to launch the product by 2025.
The Impetus Behind the Shift This remarkable shift is, in part, attributed to the escalating political tensions between the United States and China. Ming-Chi Kuo suggests that Apple is planning to scale down its operations with Foxconn in Zhenghzhou and Taiyuan, China, by 35-45% and 75-85%, respectively, by the year 2024.
Kuo emphasizes that if all goes according to plan, India’s contribution to iPhone manufacturing could surge to 20–25% by 2024. This diversification of Apple’s supply chain aims to mitigate risks and secure its production processes.
Factors Driving the Decision The pronounced increase in iPhone order allocation to Luxshare and improvements in its production capabilities have played a significant role in Apple’s strategic shift, according to Kuo. To streamline the design and minimize potential risks, Apple has opted for the standard iPhone model for the production of the iPhone 17 series.
India’s Role in Apple’s Global Supply Chain Presently, India accounts for approximately 12%-14% of Apple’s global iPhone shipments. Of this production, Foxconn is responsible for 75-80%. The recent acquisition of Wistron’s manufacturing unit by Tata Group is set to solidify Apple’s rapport with the Indian government and expedite the company’s expansion in India, simplifying manufacturing processes for other Apple products.
Apple’s Aspirations in India Apple has set ambitious goals for its India market strategy. Localization of the manufacturing process is already showing significant signs of growth. During the initial week of the festive season sale this year, Apple successfully crossed the 1.5 million unit mark in iPhone sales.
As India becomes the pioneering destination for iPhone 17 production, Apple is strategically positioned to navigate evolving geopolitical landscapes while further strengthening its presence in the dynamic Indian market.
