Apple Inc. is expected to initiate the development of its latest iPhone 17 model in India by the second half of 2024, Officenewz reported, citing leading Apple analyst Ming-Chi Kuo. This could be a historic pivot in Apple’s manufacturing strategy, as it will mark the first instance of a New Product Introduction (NPI) commencing outside of China.
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The likely production shift will see Apple’s longstanding partners, Foxconn and Pegatron, alongside India’s Tata Group— which recently acquired Wistron’s production facilities for $125 million— laying the groundwork for the iPhone 17’s entry into the market.
Ming-Chi Kuo, a reputable analyst from Taiwan, has indicated that this development is part of Apple’s broader agenda to mitigate risks by diversifying its production footprint. Consequently, Apple is expected to diminish its dependency on Foxconn‘s Chinese facilities in Zhengzhou by up to 45 per cent and in Taiyuan by up to 85 per cent by 2024.
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Selecting a standard iPhone model for the NPI in India, according to Ming-Chi Kuo, reflects a tactical decision aimed at minimizing design complexities and associated risks, Economic Times reported.
Current statistics reveal that India accounts for 12-14 per cent of Apple’s global iPhone shipments, with Foxconn dominating the Indian production landscape. India’s rise as an iPhone manufacturing hub commenced with the production of the iPhone SE by Foxconn in 2017 and has since seen all successive models being produced within the country.
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The redistribution of production capacity is set to decrease China’s share of global iPhone production from 93.5 per cent in 2022 to 91.2 per cent in 2023. Meanwhile, India’s contribution is expected to rise to 10 per cent of global shipments, up from 5-7 per cent in the previous year, satisfying 85 per cent of local demand as per Counterpoint Research.
