Apple’s Next Move: iPhone 17 to be Assembled in India

iPhone India
Image Credit: @mingchikuo

Prominent Apple analyst Ming-Chi Kuo has shared an intriguing update regarding iPhone production, with a notable shift towards India on the horizon. Kuo’s insights suggest that the New Product Introduction (NPI) for the upcoming iPhone 17 is likely to kick off in India. Signifying a significant departure from the longstanding tradition of initial manufacturing in China.

iPhone 17 Production Shifts from China to India

Apple iPhone 15 Pro Display

In the year 2023, a substantial 12ā€“14% of all iPhone shipments worldwide will roll off the production lines in India. The lion’s share of this manufacturing endeavor, approximately 75ā€“80%, will be by Foxconn, a major player in the tech industry. Moreover, we expect these numbers to rise. With estimates pointing to a robust 20ā€“25% of iPhones ‘Made in India’ by 2024.

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So, this transition dovetails with a simultaneous scaling down of production in China, notably impacting Foxconn’s facilities in Zhengzhou and Taiyuan. Projections indicate a reduction of 35ā€“45% and 75ā€“85% in these locations, respectively, by the year 2024. This shift is also due to Luxshare’s expanding share of iPhone production. And its commitment to advancing automation on the production lines.

The standard iPhone 17, which will launch in the latter half of 2025, will commence production in India during the latter half of 2024. This represents Apple’s maiden foray into creating a new iPhone model outside the confines of China. The rationale behind this strategic move is grounded in the iPhone 17’s reduced design complexity, thereby mitigating design-related risks.

Also, Apple will join forces with Tata Group as an iPhone assembler. Leveraging Tata’s acquisition of Wistron’s iPhone production lines in India. This collaboration underscores Apple’s commitment to strengthening its relationship with the Indian government.

In the grand scheme of things, this strategic maneuver holds the potential to fortify future iPhone and product sales in India. It is positioned as a pivotal element in Apple’s growth strategy over the ensuing decade. Marking a noteworthy paradigm shift in iPhone production and international business dynamics.

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