Apple is gradually pivoting its iPhone production to India, a move expected to reshape global iPhone shipments. Renowned analyst Ming-Chi Kuo forecasts that iPhones manufactured in India will constitute 12% to 14% of global shipments in 2023, with projections indicating a substantial increase in the coming year.
Kuo envisions a favorable trajectory for Apple, anticipating that, under optimal conditions, Indian-made iPhones could contribute to a striking 20-25% share of global volume in 2024. This aligns with a prior JPMorgan forecast suggesting that Apple might relocate 25% of total iPhone production to India by 2025.
Currently, Foxconn dominates 75% to 80% of iPhone production capacity in India, a figure poised for adjustment with the entry of Indian conglomerate Tata Group into iPhone production through Wistron’s facilities.
Remarkably, Kuo predicts that Apple will commence mass production of the standard iPhone 17 in India, marking a historic move as the first time Apple initiates production development of a new iPhone model outside of China. The choice of the standard iPhone is attributed to its less intricate design, minimizing associated risks.
As Apple’s iPhone production in India burgeons, the forecast indicates a corresponding decline in output from Chinese factories. Kuo estimates a reduction in Foxconn’s production capacity in Zhengzhou and Taiyuan, China, by 35-45% and 75-85%, respectively, by 2024.
Beyond the manufacturing landscape, Kuo underscores the strategic importance of Apple’s increased production in India, fostering stronger ties with the Indian government. This strategic move is anticipated to amplify future iPhone and Apple product sales in the burgeoning Indian market, consolidating Apple’s global footprint.
Source: techcrunch
