Foxconn commences trial assembly of Apple's iPhone 16 Pro, Pro Max in Chennai

Apple’s contract manufacturer Foxconn (Hon Hai) has likely started trial production of the iPhone 16 Pro and Pro Max models — set to be released in September — at its Chennai facility. Apple has also started pilot runs for the base models with plans for mass production to meet global launch timeline.

According to industry executives and customs data reviewed by ET, Foxconn has imported components such as bare printed circuit boards, display assemblies and camera modules for the Pro and Pro Max models in small batches of 500-1000 units. This suggests that a pilot phase is ongoing, the executives said.

Apple has so far been making the top-end Pro models exclusively in China. But the US-based smartphone company is looking to diversify out of that country amid geopolitical tensions between Washington and Beijing.


Apple didn't respond to ET's emailed queries.

Industry executives aware of the development said Apple is targeting mass production of the Pro models in India by the end of this fiscal year. The parts that were imported, as per data reviewed by ET, happened in June. Experts said it is likely that the company has imported more parts in the preceding months.

“Once pilot production is successful, Apple will look at mass producing the Pro models in India. Manufacturers in India have already demonstrated their capability to produce the base models in tandem with China last year. It is only natural for Apple to now look at increasing its share of local manufacturing by including the Pro models as well,” said an industry executive who did not wish to be named.

That said, it is not clear whether Apple will immediately be exporting the Pro models from India. Experts said the company will first look to fulfil local demand with locally made units and pass on the cost benefits to the customers. Even so, it is likely that the first batch of units made available after the September launch will be imported.

The move is significant for India’s manufacturing story considering that production of the Pro models requires specialised assembly lines and higher technical expertise, experts said.

“Apple’s plans to produce the Pro models in India is a sign that the manufacturing capabilities in India are maturing. There’s plenty of trained manpower available to take up the challenge and be at par with China in terms of quality,” the executive said.

The company continues to make the majority of its iPhones in China. In India, Apple iPhones are made by contract manufacturers Foxconn and Pegatron, along with Tata Electronics which took over Wistron’s India production facilities and is enlisted as an Apple supplier.

According to the recent Economic Survey, India contributes to 14% to Apple’s overall iPhone production, emerging as a key hub for global exports. iPhones worth a market value of Rs 1.35 lakh crore were exported in FY24 from India to markets in the Middle East, Europe and the US.

The uptick in manufacturing has resulted in the creation of around 150,000 direct jobs since 2021, with Foxconn employing over 41,000 people at its factory in Chennai.

Apple also sees India as a key growth market for its products and services. Apple’s volume share in India jumped to 6% in the April-June quarter this year from just 2% share in FY18, driven by the market’s premiumisation trend.

Market trackers have also predicted higher demand for the Pro models this time as compared to previous years as the US major is expected to introduce generative-AI based use cases and applications in the upcoming generation, triggering a replacement cycle.

“It’s likely that Apple expects a stronger demand for its Pro models in India this time. With local manufacturing and PLI (production-linked incentive scheme) incentives in place, Apple may even pass on some of the cost savings on the Pro models to customers. Pro models are generally more expensive in India due to taxes and duties as compared to other markets,” an analyst who did not wish to be named said.