In a strategic shift mirroring other major IT players, Apple is progressively relocating its smartphone production to India. Renowned analyst Ming-Chi Kuo anticipates that iPhones manufactured in India will make up 12% to 14% of the global shipments in 2023, with projections indicating a further surge in the coming year.
Under optimistic conditions, Kuo predicts a substantial leap, foreseeing Indian-made iPhones accounting for an impressive 20-25% of the global volume in 2024. This aligns with JPMorgan’s earlier forecast, suggesting that Apple could potentially shift a quarter of its total iPhone production to India by 2025.
Currently, Foxconn dominates 75% to 80% of iPhone production capacity in India. However, this landscape is expected to witness a shift when Indian conglomerate Tata Group commences iPhone production on Wistron’s assembly line.
In a groundbreaking move, Kuo predicts Apple’s initiation of mass production for the standard iPhone 17 in India. This marks a significant departure, representing the first time Apple will develop a new iPhone model outside of China. The choice of the standard iPhone, with its less complex design, aims to minimize design risks.
As the share of iPhone production in India grows, a corresponding decline in output from Chinese factories is anticipated. Kuo estimates a reduction in Foxconn’s production capacity in Zhengzhou and Taiyuan, China by 35-45% and 75-85% respectively by 2024.
Beyond manufacturing logistics, this expansion of iPhone production in India is seen as a strategic move to bolster Apple’s relationship with the Indian government. Kuo believes that such a maneuver will not only enhance future iPhone sales but will also positively impact the market for other Apple products in India.
Source: techcrunch
