Apple is gradually shifting its smartphone production to India, and according to renowned analyst Ming-Chi Kuo, this could have a seismic impact. Predicting a surge, Kuo forecasts that iPhones manufactured in India will constitute 12-14% of global shipments in 2023, with the potential to escalate to a staggering 20-25% next year.
The lion’s share of this production shift is currently orchestrated by Foxconn, claiming 75-80% of iPhone production capacity in India. However, Kuo anticipates a shift with Indian conglomerate Tata Group entering the scene, as it gears up to produce iPhones on Wistron’s production line.
What adds to the anticipation is Kuo’s revelation that Apple is poised to initiate mass production of the standard iPhone 17 in India. This groundbreaking move marks the first time Apple has ventured into developing a new iPhone model outside of China, highlighting the company’s strategic diversification efforts.
As the production pendulum swings towards India, Kuo projects a potential decline in output from Chinese factories. By 2024, he estimates a significant reduction in Foxconn’s production capacity in Zhengzhou and Taiyuan, China, by 35-45% and 75-85%, respectively.
Beyond the manufacturing landscape, Kuo underscores the diplomatic advantage for Apple in strengthening ties with the Indian government. This move positions Apple favorably for future sales of iPhones and other products in the burgeoning Indian market, where the tech giant aims to solidify its footprint.
As Apple redefines its global production map, this shift not only diversifies risk but also aligns with broader industry trends, showcasing the transformative potential of Indian-made iPhones on a global scale.
Source: techcrunch