Introductory production of the standard iPhone 17 is expected to start in India in the second half of 2024, says industry analyst Ming-Chi Kuo. It will be the first time for Apple to begin development of a new iPhone model outside of China.
- In 2023, 12–14% of global iPhone shipments are made in India. Foxconn owns 75–80% of the iPhone production capacity in India.
- If all goes well, the proportion of iPhones made in India will increase to 20–25% by 2024.
- Foxconn’s production scale in Zhengzhou and Taiyuan, China, is expected to decrease by 35–45% and 75–85%, respectively, by 2024. In addition to expanding production in India, Luxshare’s rapid increase in iPhone order allocation and improvements in production line automation are also the main reasons for the production scale reduction.
- The new product introduction (NPI) for the standard iPhone 17 (to be launched in 2H25) is expected to start kick-off in India in 2H24. It will be the first time for Apple to begin development of a new iPhone model outside of China. The standard iPhone is chosen for its lower-difficulty design development to reduce design risk.
- By making India’s Tata an iPhone assembler (already acquired Wistron’s iPhone production lines in India), Apple can strengthen its relationship with the Indian government. This move will benefit future sales of iPhones and other products in India and is critical to Apple’s growth over the next decade.
Kuo says Apple will assemble the standard iPhone 17 in India due to its “lower difficulty” design development “to reduce design risk.”
Apple has been working to diversify its Supply Chain, as it looks to reduce its reliance on Chinese manufacturers. It has manufactured older iPhone models and other devices in India for several years.
Apple assembly partners Foxconn, Pegatron, and Tata (new owner of Wistron) currently manufacture iPhones in India, with Foxconn handling the lion’s share of the assembly.
Kuo believes that 12 to 14% of global iPhone shipments are being manufactured in India, with that percentage expected to increase to 20 to 25% by 2024.
By moving manufacturing to India, Apple not only reduces its reliance on China, it also offers Apple an opportunity to strengthen its somewhat tenuous relationship with the Indian government. Apple is seeing a growing demand for its products in the country, opening its first retail stores in Mumbai in 2023.
