Apple is progressively steering its smartphone production towards India, and according to analyst Ming-Chi Kuo, the impact is poised to be significant. Anticipating a monumental shift, Kuo predicts that iPhones manufactured in India will constitute a substantial 12% to 14% of global iPhone shipments in 2023, with the potential to surge to an impressive 20-25% in 2024 under favorable conditions.
Currently, Foxconn claims the lion’s share, approximately 75% to 80%, of iPhone production capacity in India. However, this landscape is expected to shift as Indian conglomerate Tata Group enters the fray, initiating iPhone production on Wistron’s production line.
A noteworthy revelation from Kuo is Apple’s plan to commence mass production of the standard iPhone 17 in India, marking a historic first outside of China. Kuo cites the model’s less complex design as a strategic choice, minimizing design risks associated with production development.
As Apple diversifies its manufacturing hubs, Kuo predicts a potential decline in output from Chinese factories by 2024. He estimates a substantial reduction in Foxconn’s production capacity in Zhengzhou and Taiyuan, China, by 35-45% and 75-85%, respectively.
Beyond the manufacturing implications, Kuo emphasizes the diplomatic advantage for Apple in strengthening ties with the Indian government. This strategic move is anticipated to bolster Apple’s market position in India, potentially influencing future sales not only of iPhones but also of other Apple products in the rapidly growing Indian market.
This strategic shift in production underscores Apple’s commitment to adapt to evolving global dynamics, tapping into new markets, and diversifying its manufacturing landscape for sustained growth.