Apple begins manufacturing iPhone 16 Pro in India; firms up retail plans

For Apple, the financial year begins every October. As the tech giant embarks on its fiscal year 2025, it has manufacturing and retail plans for India. The entire iPhone 16 lineup is now being manufactured in India, which means for the first time, iPhone Pro models are also being made by Apple’s contract manufacturers here. The company is also charting plans for more retail stores expected to open in the coming months.

The iPhone 16 Pro and Pro Max devices manufactured in India will also be exported to select countries. (Official image)

“Apple is now manufacturing the entire iPhone 16 lineup, including iPhone 16 Pro and iPhone 16 Pro Max, in India,” a company spokesperson told HT. Until now, only the standard iPhone models were manufactured here. For instance, the iPhone 15 and iPhone 15 Plus, before that iPhone 14 and iPhone 14 Plus. Apple began manufacturing iPhones in India in 2017 and has consistently ramped production volumes.

The iPhone 16 Pro and Pro Max devices manufactured in India will go on sale in stores in India in the coming weeks. They will also be exported to select countries.

Apple’s manufacturing partners in India include Taiwanese giants Foxconn and Pegatron, as well as the Tata-owned Wistron, and the Tata Group, which is Apple’s only Indian manufacturing partner.

The company’s manufacturing plans for India tie in closely with the country’s aspirations of becoming a global manufacturing hub for smartphones. The Economic Survey 2023-24 also highlighted Apple’s plans.

“Apple assembled 14% of its global iPhones in India in FY24. “Foxconn invested in the states of Karnataka and Tamil Nadu to set up new manufacturing plants for components,” said the survey.

In the past five years, major multinational companies, including Apple, took cues from the persistent trade tensions between the US and China, as well as the supply chain disruptions caused by the Covid pandemic in 2020, to reduce reliance on the country’s manufacturing and supply chains.

India timed this with a push for the Make in India initiative with the phased Performance Linked Incentive scheme for local manufacturing. That propelled India to the sixth-largest smartphone exporter globally by 2022. India was the 23rd largest smartphone exporter in 2014. In FY24, smartphone exports comprised over 31% of the total smartphones manufactured.

Apple surprised its competitors, the Android phone makers, by significantly reducing the prices of the iPhone 16 Pro and iPhone 16 Pro Max, compared with their predecessors, the iPhone 15 Pro and iPhone 15 Pro Max. By bucking the trend of generational inflation, which is common with upgraded versions, it forced the likes of Samsung to respond with price corrections and bundled schemes for the current Galaxy S series flagship line-up.

The iPhone 16 Pro prices start at ₹1,19,900 as against an iPhone 15 Pro which costs ₹1,34,900 forwards. The larger iPhone 16 Pro Max now starts at ₹1,44,900 and that is significantly lower than the iPhone 15 Pro Max price tag of ₹1,59,900 forwards.

iPhone 16 and iPhone 16 Plus retain the price points of their predecessors, the iPhone 15 and iPhone 15 Plus, despite significant hardware upgrades including an A18 chip, iOS with Apple Intelligence, and better photography features. The iPhone 16 prices start at ₹79,900 while the iPhone 16 Plus costs ₹89,900 forwards.

More Apple Stores set to open

Apple-owned retail stores are over the horizon. Apple Saket in Delhi and Apple BKC in Mumbai, the first two Apple Stores in India, opened in April 2023. Now, the next retail stores, or Apple Stores, will be in Bengaluru and Pune, with Delhi-NCR and Mumbai set to get their second stores.

“Our stores are incredible places to experience the magic of Apple, and it has been wonderful to deepen our connection with our customers in India. We are thrilled to build our teams as we plan to open more stores in India because we are inspired by the creativity and passion of our customers across this country,” said Apple’s senior vice president (retail) Deirdre O’Brien.

When Apple Saket and Apple BKC opened, Apple CEO Tim Cook told HT that India has such a beautiful culture and incredible energy, and they were excited to build on their long-standing history — supporting customers, investing in local communities, and working together to build a better future with innovations that serve humanity.

For Apple, India has consistently delivered growth. The June quarterly report, the latest from the company, reported a revenue record for the company at $85.8 billion; 5% higher than the same quarter last year. Cook highlighted the company set quarterly records in India as well alongside a few other countries including the UK, Thailand, France, Mexico, and Canada.

India continues to play a crucial role in what Cook said are “non-negotiable” targets for sustainability and the environment. Renewable energy company CleanMax has signed up to provide additional clean energy capacity for Apple’s India offices, its two retail stores, as well as corporate operations, as part of the company’s target to achieve 100% carbon neutrality for its supply chain and products by 2030.