With Apple’s major annual event just around the corner, details about the upcoming iPhone 16 series are increasingly surfacing. The highly anticipated launch is rumored to be scheduled for September 10. Following the assembly of the iPhone 15 in India last year, Apple is now preparing to manufacture the iPhone 16 Pro and 16 Pro Max in India for the first time. This move represents a key step in Apple’s strategy to diversify its production away from China, particularly in light of growing tensions between the US and China.
India has emerged as a rapidly growing market for Apple, especially with recent financial incentives introduced by Prime Minister Narendra Modi to encourage high-end manufacturing. This makes it a strategic move for Apple to produce its latest premium iPhones in the country.
Bloomberg’s Mark Gurman reports that Apple’s long-time manufacturing partner, Foxconn Technology Group, is preparing to start assembling the iPhone 16 Pro models at its factory in Tamil Nadu. Foxconn has already started training thousands of workers at the facility and will commence production of these flagship devices in India following the global launch this fall. While Foxconn will spearhead the assembly of the iPhone 16 Pro in India, other local partners such as Pegatron and Tata Group may also join in on the production later.
With local assembly underway, Apple might reduce the prices of the iPhone 16 Pro and iPhone 16 Pro Max by up to 10%. At present, the iPhone 15 Pro models are imported, leading to higher costs due to import duties imposed by the Indian government. However, Mark Gurman notes that despite the local assembly, expensive component imports and local taxes will likely keep the iPhone 16 Pro models more expensive in India compared to some other regions.
With no significant upgrades anticipated, Apple is likely to rely on its reputation and Apple Intelligence to drive sales of the iPhone 16 series. The iPhone 16 will be the first non-Pro model to support Apple Intelligence. Apple is expected to maintain the pricing of the iPhone 16 series in line with last year’s models. With a projected 10% price reduction, the iPhone 16 Pro and Pro Max could be priced at approximately ₹1,20,500 and ₹1,44,000, respectively. Based on leaks, there are already predictions about the iPhone 16 pricing.
The report indicates that a significant portion of the iPhone 16 Pro models manufactured in India will be exported to the US, Europe, and the Middle East, as demand fordemand for high-end models is comparatively lower in India than for standard models.
Bloomberg also revealed that Apple assembled iPhones worth $14 billion in India during the fiscal year ending March 2024, representing about 14% of Apple’s global production.
In 2021, Apple started manufacturing the budget-friendly iPhone SE in India. Last year, production expanded to include the non-Pro variants, such as the iPhone 15 and 15 Plus. With the upcoming assembly of the iPhone 16 Pro models in India, Apple aims to increase the proportion of Indian-produced devices in its global output to around 25% over the next 3 to 4 years. By assembling the iPhone 16 Pro and 16 Pro Max locally, Apple expects its partners to meet domestic demand by the end of the year.
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