To reduce its dependency on China, Apple will, for the first time, manufacture the iPhone 16 Pro and iPhone 16 Pro Max in India. This marks a huge development for the tech giant and India’s booming smartphone industry, wherein both assembly lines and retailers benefit from the rise in smartphone shipments in Q1 2024. As for Apple, it has been making iPhones in the country for quite some time, but the contract manufacturers only assembled the non-Pro models, like the iPhone 13, iPhone 14, and iPhone 15, in the country. Nonetheless, here are three things that will change with Apple making the iPhone 16 Pro and iPhone 16 Pro models in India.
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Increased Contribution To Apple’s Global Output
As of March 2024, the Cupertino-based tech giant manufactured up to 14% of its iPhones in India, worth $14 billion. According to Bloomberg, the company has directed Foxconn Technology Group to prepare its staff and assembly lines to start making the iPhone 16 Pro and iPhone 16 Pro Max within weeks of the global launch. If everything goes well, Apple should not only start selling Indian units in the country but also exporting them to other markets like Europe, the Middle East, and the United States. This would increase India’s contribution to the global output, benefitting the country’s smartphone industry.
Besides Foxconn, Pegatron Corp. and Tat Group could also start making the new Pro models in India. While dedicated assembly lines for the Pro models could result in more jobs and a strengthened supply chain that can meet higher demands, it will also reinforce India’s position as a global manufacturing hub.
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Local Manufacturing Could Decrease The Indian Pricing
After the Indian government cut down the Basics Custom Duty on imported smartphones from 20% to 15%, Apple slashed the prices of its iPhone 15 Pro models by up to Rs. 5,900. With local manufacturing, the company could avoid customs duty on imported units and sell the Pro models at an even better price. Further, the after-sales service could also improve, given that imported parts would be available more readily. However, the report points out that customers shouldn’t expect a huge price drop, especially compared to other markets, as the company would still import all the components in the country, which attracts additional costs and taxes.
There’s a good chance that the iPhone 16 Pro models will debut at their usual pricing at the launch. However, by October or November, buyers could start seeing discounts on them, either at authorized resellers like Unicorn, iStore, etc., or via third-party retailers like Flipkart, Amazon, Reliance Digital, or Croma. Instead of providing upfront discounts, which affect the value of a phone, buyers might see bank offers for an instant discount or cashback of up to Rs. 10,000 on the Pro models. Ultimately, these are speculations; buyers should take them with a pinch of salt.
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Reduced Dependence On China
Last but not least, increasing production in India will decrease the company’s dependency on China, which remains one of its largest manufacturers. Even though the company makes 14% of its iPhones in India, that leaves a good 84% to be manufactured overseas, of which a significant portion comes from China. Ultimately, the US-based giant wants to reduce its dependence on one country and diversify its supply chain to meet global requirements more timely and systematically.
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