Prominent Apple analyst Ming-Chi Kuo has shared an update regarding iPhone production, highlighting a notable shift towards India. Kuo forecasts that the introduction of the iPhone 17's New Product will likely begin in India, signifying a significant transition as the phone's initial manufacturing will take place in India rather than China.
In 2023, approximately 12–14% of global iPhone shipments are expected to be manufactured in India, with Foxconn leading the charge with 75–80% of the iPhone production capacity in the country. The percentage of iPhones produced in India is projected to rise to 20–25% by 2024.
This alteration aligns with a decrease in production scale in China, with Foxconn's facilities in Zhengzhou and Taiyuan anticipated to decline by 35–45% and 75–85%, respectively, by 2024. Luxshare's increasing allocation of iPhone orders and advancements in production line automation contribute further to this decline.
The production of the standard iPhone 17 (scheduled for 2H25) is slated to commence in India in 2H24. This move signifies Apple's first foray into manufacturing a new iPhone model outside of China, a strategic decision based on the model's reduced design complexity, thereby minimizing design risks.
Through a partnership with Tata Group as an iPhone assembler (Tata has already acquired Wistron's iPhone production lines in India), Apple aims to fortify its ties with the Indian government. This strategic maneuver is expected to bolster future iPhone and product sales in India, playing a pivotal role in Apple's growth over the next decade.