Just days after Foxconn chairman Young Liu visited Tamil Nadu, reports indicate that the company's iPhone plant in the southern Indian state will soon commence production of the latest iPhone model.
Bloomberg, citing unnamed sources, reported that Foxconn, Apple's key partner, is gearing up to assemble the new iPhone 16 Pro and Pro Max models in India. The company is training thousands of workers at its factory in Tamil Nadu to meet the high demand for these devices.
In the early years of iPhone manufacturing in India, the most expensive models had to be imported, as the local supply chain was not yet developed enough to meet the requirements for producing the iPhone Pro and Pro Max.
By the end of the year, the made-in-India iPhones will meet the domestic demand in India as local assembly is expected to reduce the price of the iPhone Pro models by up to 10% compared to imported versions due to lower import duties, particularly when the festive season, the peak-season for consumer electronics in India, is approaching. However, the final prices in India will still be higher than in some other markets due to component imports and local taxes.
Despite this, most of the India-made iPhone Pro and Pro Max models will be exported to Europe, the Middle East, and the US, as demand for these premium models is relatively low in India.
In the meantime, according to the International Business Times, Tata Group, another iPhone assembler in India, is set to begin operations at its iPhone assembly plant in Hosur, Tamil Nadu, in the fourth quarter. The 250-acre facility is expected to employ over 50,000 workers, the majority of whom will be women. Tata has invested INR 60 billion (approximately US$720 million) in the plant.
Mint reported that India's smartphone exports surged to over US$15 billion in 2023-24, up from US$11 billion the previous year. The country exported about 52 million smartphones, with the average value per unit rising from US$85 in 2019-20 to $296 in 2023-24.
Apple assembled 14% of its iPhones, worth US$14 billion, in India last year. A third of these exports, valued at US$5.5 billion, went to the US, while the UAE remains India's second-largest market.
