Made-in-India iPhone 16 Pro, Pro Max Could be More Affordable: Report

As Apple keeps expanding its Indian manufacturing capabilities, it could pass on the benefits of lower costs and import taxes to end users with the launch of its iPhone 16 series next month. A Bloomberg report indicates that Foxconn will soon begin producing Apple’s high-end iPhone 16 Pro and iPhone 16 Pro Max models at its Tamil Nadu facility in India. This will be the first time that Pro models are manufactured in India, with units available in the domestic market at launch time. 

Local manufacturing could allow Apple to save on import duties and other expenses, which could be passed on to end users, assuming that Apple is not planning to raise prices with this new generation. However, that margin could still be wiped out by rising component and labour costs and the Indian Rupee losing value against the US Dollar over the past year. iPhone Pro models in India have historically been priced significantly higher than their US Dollar equivalent prices, whereas non-Pro models have been more at par. 

Apple has so far been using its partners in India to manufacture the mainstream iPhone models and value-focused iPhone SE. The company has increased the number of models it makes here and the proportion of units exported over the past few years. Reports have also suggested that Apple is planning to use its manufacturing partners in India to produce AirPods, iPads and MacBooks for the local market and for export. The company is moving away from China as its sole manufacturing hub in order to mitigate risks and diversify its supply chain options.

On a recent visit to India, Foxconn chairman Young Liu stated that the company has so far invested US$ 10 billion in India, and has plans to increase that over the coming year. 

In related news, Tata Electronics’ upcoming iPhone manufacturing plant in Hosur, Tamil Nadu, is expected to be operational by November this year. This will operate alongside the former Wistron plant that Tata Electronics recently acquired. That means new iPhone 16 models will not be made there at the time of their expected launch in September, but Apple could be able to use this plant’s capacity to boost its domestic and export stocks before the US holiday shopping season.