Cesare Ferrari
Apple (NASDAQ:AAPL) will produce its iPhone Pro and Pro Max models in India for the first time this year, Bloomberg News reported.
Apple’s manufacturing partner Foxconn Technology (OTCPK:FXCOF) — which is formally known as Hon Hai Precision (OTCPK:HNHAF) (OTCPK:HNHPF) — will assemble the new phones within weeks of their worldwide launch this fall, the report added citing people with knowledge of the matter.
Foxconn has started training thousands of workers at its factory in the Indian state of Tamil Nadu state in an effort to make the iPhone 16 Pro and Pro Max as close to the global launch as possible, the report noted.
The production efforts indicate the tech giant is advancing efforts to reduce its dependence on China amid rising geopolitical tensions. In June, it was reported that Apple assembled about $14B of iPhones in India in the fiscal year ended March 2024. The Cupertino, Calif.-based company made nearly 14% or about 1 in 7 of its iPhones in India. Foxconn had assembled about 67% of the India-made iPhones, while Pegatron assembled about 17%.
Apple is expected to produce the India-made standard iPhone 16 available on the same day the latest generation starts selling worldwide, the report added.
Apple’s other partners, Pegatron’s Indian unit and conglomerate Tata Group, could also soon start making the Pro models, which require more specialized manufacturing lines.
By the end of the year, India-made iPhones will be able to satisfy the local demand, the report noted. Local assembly will likely help Apple reduce the prices of the Pro models by up to 10% versus the imported devices, on which India imposes import duties, according to the report.
However, expensive component imports and domestic taxes would keep the prices of iPhone 16 Pro and Pro Max higher in India, compared to some foreign markets which have little to no taxation.
The U.S. tech giant will export the bulk of the India-made Pro and Pro Max models to Europe, the Middle East and the U.S. as the demand for the higher, costlier versions is relatively less in India, however, the upcoming holiday season could increase sales, the report stated.
Last month, Apple cut the prices of iPhones in India by up to 6,000 rupees (about $71.7) following a reduction in basic customs duty on mobile phones in the country, and a potential slowdown in China sales.
China remains Apple’s largest iPhone-making hub and the largest overseas market. However, the company has been facing tough competition by rivals such as Huawei Technologies and an expanding scrutiny on the use of foreign technology in the workplace.
Apple ranked sixth in China with a market share of 14%, a decrease of 2% percentage points, compared to the second quarter of 2023. Chinese companies dominated all the top five spots in phone shipments for the second quarter of 2024 in the Asian country, according to data from research firm Canalys.
Meanwhile, it was reported last month that Apple’s (AAPL) annual sales in India hit a record of almost $8B, with iPhones accounting for more than half of the sales.
