Apple is gradually diversifying its iPhone production to India, with projections from renowned analyst Ming-Chi Kuo suggesting that by 2024, Indian-made iPhones could constitute up to 25% of global shipments.
Kuo anticipates a significant surge in the share of Indian-produced iPhones, estimating that, under favorable conditions, this figure could reach 20-25% of the total global volume by next year. This aligns with an earlier JPMorgan forecast predicting that Apple might relocate a quarter of its total iPhone production to India by 2025.
Presently, Foxconn commands a substantial 75-80% share of iPhone production capacity in India, a dominance expected to shift marginally when Tata Group joins the production landscape through Wistron’s production line.
In a noteworthy revelation, Kuo predicts that Apple will embark on mass production of the standard iPhone 17 in India. This marks a groundbreaking departure, as it signifies the first instance of Apple initiating production development for a new iPhone model outside of China. Kuo attributes the choice of the standard iPhone to its less intricate design, minimizing potential design risks.
As India’s role in iPhone production ascends, Kuo foresees a corresponding decline in output from Chinese factories. By 2024, he estimates that Foxconn’s production capacity in Zhengzhou and Taiyuan, China, could contract by 35-45% and 75-85%, respectively.
Beyond production logistics, Apple’s strategic move into India is poised to fortify its relationship with the Indian government. Kuo believes that expanding iPhone production in India will not only enhance Apple’s local presence but will also contribute to bolstering future sales of iPhones and other Apple products in the burgeoning Indian market.
Source: techcrunch
