As Apple strategically diversifies its manufacturing footprint, renowned analyst Ming-Chi Kuo predicts a substantial uptick in the share of Indian-made iPhones in the global market. Projections suggest that devices manufactured in India will account for 12% to 14% of worldwide iPhone shipments in 2023, with expectations of further growth in the coming year.
Under optimistic conditions, Kuo envisions Apple increasing the proportion of Indian-made iPhone shipments to an impressive 20-25% of the global volume in 2024. This aligns with a prior forecast by JPMorgan, indicating that Apple could potentially shift 25% of total iPhone production to India by 2025.
Currently, Foxconn dominates 75% to 80% of iPhone production capacity in India. However, this landscape is poised for change as Indian conglomerate Tata Group prepares to join the fray, commencing iPhone production on Wistron’s production line.
In a groundbreaking move, Kuo anticipates Apple initiating mass production of the standard iPhone 17 in India. This marks a significant departure, as it would be the first time Apple kickstarts the production development of a new iPhone model outside of China. The choice of the standard iPhone is strategic, attributed to its less complex design that minimizes potential risks.
This shift in production dynamics is expected to have a ripple effect on Chinese factories, with Kuo estimating a 35-45% reduction in Foxconn’s production capacity in Zhengzhou and a substantial 75-85% decrease in Taiyuan by 2024.
Beyond the manufacturing landscape, Apple’s increased investment in iPhone production in India is seen as a strategic move to solidify its relationship with the Indian government. Ming-Chi Kuo believes this maneuver will not only bolster future iPhone sales in India but also contribute to the overall success of Apple’s product ecosystem in the region.
Source: techcrunch