Apple Inc. plans to begin producing its premium iPhone Pro models in India for the first time this year, marking a critical milestone in the tech giant’s worldwide strategy. This decision is anticipated to have a significant influence on the pricing of high-end smartphones in the Indian market.
Foxconn, Apple’s manufacturing partner, is supposed to start producing the iPhone series 16 Pro and Max Pro from its Tamil Nadu plant following the worldwide launch in autumn, insiders say. This decision highlights India’s increasing significance in Apple’s business strategies since it has become much more aligned with those of the company.
Since 2021, Apple has been ramping up its production capabilities in India with the help of some financial tax incentives offered by the Indian government during Prime Minister Narendra Modi’s regime. There are other factors behind such government support for local industries which aim at diversifying and expanding the export base of high-tech production in particular. It is believed that this move might reduce prices of Indian-made iPhones if they start making them themselves because presently imported phones attract huge import duties thus making them expensive compared to those manufactured locally.
Industry experts suggest that local production could lead to a price reduction of up to 10% for Indian consumers compared to imported models. This would make the iPhone 16 Pro and Pro Max more accessible to a broader segment of the Indian population. Despite this reduction, these models are projected to remain more expensive in India than in other countries due to the high price of importing sophisticated components and other local levies.
Despite the start of local manufacture, the majority of the iPhone Pro models will be exported to Europe, the Middle East, and the United States. While demand for these luxury products in India is currently smaller than in other markets, it is expected to increase, particularly over the Christmas season.
India is rapidly transforming into a vital market for Apple, with annual sales amounting to nearly $8 billion. Forecasts suggest that this number could skyrocket to as high as $33 billion by 2030, given that more Indians are making investments in premium products. The production of high-end iPhones by Apple in India highlights its determination to stay in that market, as well as its faith in the country’s manufacturing abilities and an eye on prospects for the Indian market.
