Apple may be setting up production lines for the iPhone Pro series in India for the first time, as part of its strategy to diversify its supply chain.
A leaked image of what is believed to be the label and protective seal of the iPhone 16 Pro was shared by Tipster OvO on Weibo on August 21. The label indicates that the product was manufactured in India, rather than China, where previous generations were assembled. Until now, India has only produced the standard iPhone models, such as the iPhone 14, iPhone 15, and 15 Plus.
According to Moneycontrol, Apple is facing challenges in managing production quality in India but is keen on expanding its presence to reduce reliance on China. The company has ordered large-scale production of the iPhone 16 Pro and 16 Pro Max in India, with the help of partners like Foxconn, Pegatron India, and Tata Group. These “Assembled in India” devices are expected to be available in the first global launch wave. A significant portion of the units assembled in India will be exported to the U.S., the Middle East, and Europe.
In its Q3 fiscal report for 2024, Apple revealed that 14% of iPhones are now produced in India, up from 10% in 2023.
However, iPhone production in India has not been without its challenges. The factories heavily depend on components sourced from China, which has impacted both quality and efficiency. Additionally, the production yield has been low, reaching only about 50% of capacity. Issues related to workplace safety and hygiene at the factories have also significantly affected shipments to Europe. Certain components, such as iPhone casings, have reportedly failed to meet standards, complicating Apple’s expansion plans.
In December 2022, Ming-chi Kuo, an analyst at TF International Securities, mentioned that Apple’s long-term goal is to shift 40-45% of its iPhone production capacity to India. Apple executives are aware of the risks of over-reliance on Chinese factories, yet the stable, skilled workforce and massive market in China have made the company hesitant to relocate. The difficulties encountered in India further illustrate the challenges Apple faces in diversifying its supply chain beyond China.
