Can India Take Over iPhone 16 Pro Series Production? Analyst: Full Replacement of China Unlikely in the Short Term

Can India Take Over iPhone 16 Pro Series Production? Analyst: Full Replacement of China Unlikely in the Short TermRecent reports suggest that Apple plans to expand its production lines in India through Foxconn, including the upcoming iPhone 16 Pro and Pro Max models in its India manufacturing plans. This would mark the first time India assembles Pro series iPhones

Can India Take Over iPhone 16 Pro Series Production? Analyst: Full Replacement of China Unlikely in the Short Term

Recent reports suggest that Apple plans to expand its production lines in India through Foxconn, including the upcoming iPhone 16 Pro and Pro Max models in its India manufacturing plans. This would mark the first time India assembles Pro series iPhones. While the news has garnered widespread attention, with many believing it signifies Apple's accelerated investment in the Indian market, some analysts question its feasibility.

Dan Ives, an analyst at Wedbush Securities, told First Financial Daily, "I think India can produce some basic models, or other parts of Apple hardware. But the high-end models like Pro and Pro Max will continue to be manufactured in China, and we haven't seen any changes."

Ives highlighted the significance of the iPhone 16 series, calling it "potentially the most important launch in the last decade for Apple," making a flawless supply chain crucial. He believes that "in any form, India currently cannot be fully relied upon by Apple to ensure this very important cycle goes smoothly."

In fact, Apple has already been assembling some iPhone models in India. Last year, the iPhone 15 base model was assembled locally in India and offered to Indian customers on the day of its launch. Subsequently, Apple partnered with Pegatron to offer Indian users "Made in India" iPhone 15 Plus models.

However, Counterpoint data reveals that Apple currently holds only a 6% market share in smartphone shipments in India, but its revenue share in 2023 reached 23%, surpassing Samsung's 21% and taking the top spot. Apple reportedly shipped over 10 million iPhones in India in 2023, up from 6 million in 2022.

This indicates that while Apple's shipment share in India remains low, its high-end products have enjoyed immense success in the Indian market, corroborating Ives's statement that India is currently incapable of fully meeting Apple's high-end production demands.

India's production lines face numerous challenges, including infrastructure development, supply chain maturity, and talent pool. Furthermore, labor costs in India are higher than in China, which would impact Apple's production costs.

Therefore, despite the expansion of Apple's production lines in India, a complete replacement of China in the short term is unlikely, especially in high-end model production. Whether Apple can successfully establish its presence in India requires time to determine.

Summary

India's production lines are rapidly developing, but they are unlikely to replace China in the short term, particularly for high-end model production. Apple needs to address several challenges before achieving its long-term goals in the Indian market.