NEW DELHI: Apple is set to manufacture its high-end iPhone 16 Pro and Pro Max models in India for the first time, following the introduction of India-made iPhone 15 models last year. Reports suggest that production in India could reduce manufacturing costs by 10%. However, whether this reduction will translate into lower prices for customers is uncertain due to high component costs and local taxes. Despite this, the increased production is expected to boost iPhone exports from India.
Expanding manufacturing capacity for iPhone Pro
This marks the first time Apple is assembling its premium devices outside China. In India, Apple’s contract manufacturers include Foxconn, Pegatron, and Tata Group, with Foxconn being the largest. The move to shift production from China to India is largely driven by geopolitical tensions between the US and China. As a result, Apple aims to increase its iPhone production in India from the current 10% to 25% by next year. For FY24, Apple reported around ₹68,000 crore in domestic sales, while the value of exported iPhones was ₹66,000 crore for FY23. Foxconn, Apple’s largest manufacturing partner, is preparing to produce the iPhone 16 Pro and Pro Max at its Tamil Nadu facility. The company has reportedly trained thousands of workers to meet Apple’s quality standards, with production expected to begin shortly after the global launch of the iPhone 16 series.
Will customers see cheaper iPhones?
While local production in India could potentially reduce costs by up to 10%, the effect on retail prices might not be substantial. High component costs and local taxes may keep prices higher for Indian consumers compared to those in other regions. Additionally, most of the iPhone 16 Pro and Pro Max units produced in India are expected to be exported to Europe, West Asia, and US markets due to lower domestic demand for these high-end models.
The expansion of manufacturing in India is anticipated to increase the country’s share of global iPhone production from 14% to 25% by next year. According to industry data, exports of mobile phones from India reached $6.5 billion in the April-July period (Q1 FY25)—an almost 40% surge from the same period last fiscal (FY23). iPhone exports surpassed $1 billion in July—almost similar month-on-month performance as seen in the first quarter of FY25—driven by the production-linked incentive (PLI) scheme. iPhone exports constitute about 70% of the total mobile exports from the country, industry data showed. According to Counterpoint Research, the iPhone 15 series dominated global sales in the second quarter, with the iPhone 15, iPhone 15 Pro Max, and iPhone 15 Pro being the top three best-selling smartphones worldwide.
What to expect from iPhone 16 series
As excitement builds for the launch of the iPhone 16 series, leaked details reveal several notable upgrades and new features. The Pro models are anticipated to sport a sleek, glossy titanium finish, which promises increased scratch resistance and a more luxurious feel. They will also feature larger displays—6.3 inches for the iPhone 16 Pro and 6.9 inches for the Pro Max—with slimmer bezels (area around the screen that separates it from the device’s body) to maximize screen space.
Under the hood, the iPhone 16 series will be powered by the latest A18 Bionic and A18 Pro processors, delivering faster performance and enhanced energy efficiency. All models will run on iOS 18, which is expected to bring advanced AI capabilities, including improved Siri functionalities and new text tools.