"Designed by Apple in California, Assembled in China" has been a familiar phrase on iPhone packages since the device's debut in 2007. However, in a strategic move, Apple has diversified its supply chain and shifted some iPhone production to India. But India's role in Apple's supply chain could become even more significant with the iPhone 16 series.
According to a Bloomberg report, Apple is set to produce the more premium iPhone 16 Pro and 16 Pro Max models in India for the first time this year. To meet the anticipated demand, Foxconn has already initiated the training of thousands of workers at its factory in the southern Tamil Nadu state. This move, along with the involvement of other Apple partners like Pegatron and Tata Group, solidifies India's position in Apple's global supply chain.
iPhone production in India is not just a hoopla. As Bloomberg's report reads, in the fiscal year through March 2024, Apple assembled around $14 billion worth of iPhones in India, a significant milestone that demonstrates Apple's intention to move away from China. Most of the Indian-made iPhone 16 Pro and 16 Pro Max models will be exported to the US, Europe, and the Middle East.
While India is increasing its presence in Apple's supply chain, China is still the number one producer of Apple products, be it iPhone, iPad, or MacBook. A few weeks ago, Foxconn reportedly started hiring a staggering 50,000 new workers in China to ramp up iPhone 16 production, in addition to investing heavily in building new assembly sites.
Additionally, a large number of iPhone parts are still produced in China and need to be exported to India, which could add a transportation cost to the iPhone's overall price.
Apple's decision to produce iPhones in India brings two significant benefits. First, it diversifies the supply chain and reduces dependence on China, a move that could potentially mitigate the impact of geopolitical tensions on Apple's operations. Second, it promises to narrow the price gap for local Indian customers, making Apple's premium products more accessible.
If you're planning on buying an iPhone 16 Pro or Pro Max, there is a high chance that "Designed by Apple in California, Assembled in India" is engraved on the package of your new device.
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