Apple is progressively diversifying its iPhone production to India. Analyst Ming-Chi Kuo forecasts a significant surge, with devices manufactured in India poised to constitute 12% to 14% of global iPhone shipments in 2023, a figure expected to escalate even further in the coming year.
Under favorable conditions, Kuo predicts that Apple could elevate the share of Indian-made iPhones to an impressive 20-25% of the global volume in 2024. This aligns with a prior JPMorgan forecast, suggesting that Apple might shift 25% of total iPhone production to India by 2025.
Currently, Foxconn holds the lion’s share, commanding 75% to 80% of iPhone production capacity in India. However, this landscape is expected to evolve as the Indian conglomerate Tata Group joins the fray, commencing iPhone production on Wistron’s production line.
Anticipating a groundbreaking shift, Kuo envisions Apple initiating mass production of the standard iPhone 17 in India. This marks a historic milestone, representing the first time Apple launches production development of a new iPhone model outside of China. The choice of the standard iPhone, with its less intricate design, minimizes inherent risks in the manufacturing process.
As Indian-made iPhones gain prominence, Kuo anticipates a decline in output from Chinese factories. By 2024, he estimates a reduction of 35-45% and 75-85% in Foxconn’s production capacity in Zhengzhou and Taiyuan, China, respectively.
Beyond operational advantages, expanding iPhone production in India is seen as a strategic move to fortify Apple’s ties with the Indian government. Kuo believes this maneuver will enhance future sales of iPhones and other Apple products in the burgeoning Indian market, emphasizing the Cupertino giant’s commitment to a globalized and diversified production strategy.