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Foxconn begins iPhone 16 Pro, Pro Max production in India; Costs fall 10%

iPhone 16 Pro and Pro Max trial assembly begins in India by Foxconn with production costs expected to decrease by 10%. But retail prices in India may remain the same due to tax and component costs

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Apple iPhone series | Photo: Bloomberg

Vasudha Mukherjee New Delhi

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In a move to diversify its manufacturing operations, Apple Inc is set to commence production of its high-end iPhone 16 Pro and Pro Max models in India, a year after introducing India-made iPhone 15 models.

The production in India is expected to bring down costs for the smartphone manufacturer by 10 per cent. However, due to taxes and component costs, the retail price of the devices may remain the same, according to a report by The Economic Times.

This marks the first time premium iPhone 16 Pro and Pro Max devices will be assembled outside China. The move is part of the tech giant’s attempt to reduce reliance on its traditional manufacturing hub in China amid ongoing geopolitical tensions.
 

Apple to expand production in India with Foxconn

Apple has already established a foothold in India with the assembly of previous iPhone models, but this latest development signifies a major expansion of its manufacturing operations in the country. According to reports from Bloomberg, Foxconn, one of Apple’s primary manufacturing partners, is gearing up to produce the iPhone 16 Pro and Pro Max at its facility in Tamil Nadu. The company is reportedly training thousands of workers to ensure the production process meets Apple’s quality standards.

In addition to Foxconn, other Apple partners in India, including Pegatron and the Tata Group, will also be involved in the assembly of the smartphone devices. Production is expected to start shortly after the global launch of the iPhone 16 series, which is rumored to be unveiled on September 10 at an event in Apple Park.

Production costs of iPhone 16 to drop

One of the significant outcomes of domestic manufacturing is the potential reduction in the production cost of iPhone 16 Pro and Pro Max in India. Currently, these models are subject to hefty import duties, making them significantly more expensive than in other markets. By assembling the devices locally, Apple is expected to cut prices by up to 10 per cent. However, due to the high cost of components and local taxes, Indian consumers may still pay more than those in other regions.

India-made iPhones to be exported

Despite the local assembly, majority of the iPhone 16 Pro and Pro Max units produced in India will be exported to markets such as Europe, the West Asia, and the United States. This decision is influenced by the relatively lower domestic demand for these high-end models in India. The expansion of manufacturing in India is expected to increase the country’s share of global iPhone production from 14 to 25 per cent by next year.

iPhone 16 series: New features

As anticipation builds for the iPhone 16 launch, leaked details suggest that the new series will bring several design upgrades and features. The Pro models are expected to feature a glossy titanium finish, offering enhanced scratch resistance and a more premium feel. They will also have larger displays — 6.3 inches for the iPhone 16 Pro and 6.9 inches for the Pro Max — with slimmer bezels to maximise screen real estate.

The iPhone 16 series will be powered by the latest A18 Bionic and A18 Pro processors, promising faster performance and improved energy efficiency. All models will run on iOS 18, which is set to introduce advanced AI capabilities, including enhanced Siri functionalities and new text tools.

The official unveiling of the iPhone 16 series is expected on September 10, with a launch event at the Steve Jobs Theatre. The event is reportedly themed ‘Ready. Set. Capture.’

 

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First Published: Aug 21 2024 | 10:30 AM IST

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