The highly anticipated iPhone 17 is expected to be developed by Apple beginning in the second half of 2024. This is a noteworthy change since it will be the first time the iPhone’s New Product Introduction (NPI) procedure starts outside of China. Reputable Apple analyst Ming Chi Kuo claims that the Cupertino-based business is moving forward with this effort to diversify its supply chain.
Contract Manufacturers in India Prepare for iPhone 17 Production
Reputable contract manufacturers for Apple, such as Foxconn (Hon Hai), Pegatron, and the recently announced Tata Group, are preparing to begin the iPhone 17 introduction process as early as 2024. This move demonstrates Apple’s resolve to lessen its reliance on Chinese manufacturing and to diversify its manufacturing base.
Reduction in Operations in China
Apple has announced its intention to reduce its operations in Zhengzhou and Taiyuan, China, in collaboration with Foxconn. According to Kuo’s study, by 2024, there should be a decline of 35–45% in Zhengzhou and a more significant 75–85% in Taiyuan. Luxshare’s growing iPhone order allocation and improvements in production line automation are partially responsible for this change. The reduction plan seeks to increase the adaptability of Apple’s supply chain.
Choice of Standard iPhone Model and Production in India
The regular iPhone model was chosen by Apple for initial production in India due to its minimal design development complexity, which helps to reduce risks associated with design. Apple wants to move quickly to enter the Indian manufacturing market by taking advantage of the country’s favourable production environment and lower design hurdles. Kuo predicts that the percentage of iPhones made in India will rise dramatically, from 12–14% in 2023 to 20–25% by 2024.
Foxconn’s Dominance in Indian iPhone Production
Roughly 12–14% of all iPhone shipments worldwide in 2023 were made in India. In India, Foxconn continued to hold a sizable 75–80% of the production capacity. This highlights Foxconn’s important position in the Indian market and its vital involvement in Apple’s production ecosystem.
Tata Electronics Joins Apple’s Supply Chain
Apple just hired Tata Electronics as an assembler after purchasing Wistron’s Indian iPhone manufacturing facilities on October 27. This is a calculated move that would strengthen Apple’s ties with the Indian government and open the door to increased sales of iPhones and other products there. Kuo highlights how crucial this discovery is to Apple’s growth plan for the ensuing ten years.
To sum up, Apple’s choice to start producing the iPhone 17 in India represents a significant change in its supply chain approach. With a focus on diversity and less dependency on China, Apple is well-positioned to make substantial progress in growing its footprint in the Indian manufacturing sector.