Ming-Chi Kuo, one of the most reputable Apple analysts from TF International Securities stated that, under favourable conditions, Apple plans to increase the proportion of iPhones manufactured in India to represent 20% to 25% of its global shipments by next year. Kuo’s estimate corresponds with a previous prediction from JPMorgan last year, indicating that Apple could potentially relocate 25% of its overall iPhone production to India by 2025.
According to Kuo, Foxconn presently controls approximately 75% to 80% of India’s iPhone production capacity. The entry of the Indian conglomerate Tata Group into iPhone manufacturing, utilizing the acquired Wistron production line in the country, is expected to alter the current distribution.
“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,” he said.
About five years ago, Apple initiated iPhone assembly in India and is now actively targeting a larger Indian consumer base. In the period between July and September, the Cupertino-based company dispatched over 2.5 million iPhone units in India, marking its most successful quarter in the South Asian market, as reported by research firm Counterpoint.
New Delhi is actively providing substantial financial incentives, amounting to billions of dollars, to encourage global companies to set up manufacturing operations in India. These incentives come at a crucial juncture when numerous firms, including Apple, are exploring ways to reduce their dependence on China for device manufacturing. Also, in a recent announcement, Google stated its intention to commence manufacturing the Pixel smartphone lineup in India, aligning with this trend.
Kuo anticipates Apple to start initial production for the standard iPhone 17, slated for launch in the second half of 2025, in India during the latter part of next year. According to Kuo’s estimates, by 2024, Foxconn’s production capacity in Zhengzhou and Taiyuan, China, is expected to decrease by 35% to 45% and 75% to 85%, respectively.
