Apple’s first India-made iPhone Pro models coming this year

Apple Inc will make the most expensive iPhone Pro and Pro Max models in India for the first time this year, a milestone for the US company and the Asian country’s manufacturing sector, reports Bloomberg.

Key partner Foxconn Technology Group will begin assembling the new marquee devices within weeks of their global launch this fall, people familiar with the matter said. It’s begun training thousands of workers at its factory in southern Tamil Nadu state as it rushes to produce the iPhone 16 Pro and Pro Max as close to the global debut as possible, they said, asking not to be named as the information is private.

The production of Apple’s entire iPhone range in India is a major landmark for the US tech giant’s local push that started gathering steam in 2021, helped by Prime Minister Narendra Modi’s financial incentives to attract high-end manufacturing. Apple still makes the vast majority of iPhones in China, but it’s gradually diversifying beyond the country to lessen risks related to tensions between Beijing and Washington.

The effort resulted in Apple assembling $14 billion of iPhones in India in the fiscal year through March 2024, accounting for as much as 14 per cent of its global output. Like last year, Apple is expected to make the India-made standard iPhone 16 available on the same day the latest generation begins selling across the world, the people said.

Its other partners in the country -- Pegatron Corp’s India unit and the Tata Group -- could also soon begin making the Pro versions, the people said. The higher-end models typically have bigger batteries, better cameras and titanium bodies, and they require more specialized production lines.

Representatives for Apple, Foxconn and Pegatron declined to comment, while Tata didn’t respond to a request for comment.India, the world’s most populous nation, is also increasingly becoming an important market for Apple as its iconic devices are considered status symbols by the country’s rising, aspirational middle class. Chief Executive Officer Tim Cook visited India last year to open the first two Apple stores in the country, where annual sales are approaching a record $8 billion.

By the end of the year, iPhones made in India will satisfy the local demand, the people said. Local assembly will likely help Apple cut prices of the Pro models by as much as 10 per cent compared with imported devices, on which India levies import duties, one of the people said. Even so, expensive component imports and local taxes will keep the iPhone 16 Pro and Pro Max prices in India higher than some overseas markets with little to no taxation.

Apple will export the bulk of the India-made Pro and Pro Max devices to Europe, the Middle East and the US as the demand for the pricier versions is relatively smaller in India, though the upcoming holiday season could boost sales.

“The production of Pro models in India will increasingly encourage customers to buy locally instead of purchasing the devices overseas as the price gap narrows,” said Sanyam Chaurasia, an analyst at research firm Canalys.

“Several financing options, particularly during festive seasons, will drive higher domestic sales for Apple.”Apple still gets roughly half its global revenue from the iPhone, which has sold sluggishly in recent quarters. The new iPhone 16 series will feature better cameras, processors and displays.