Published on November 1, 2023, 7:14 pm
Image source: Fox News
TLDR: Analyst Ming-Chi Kuo predicts that India-made iPhones will account for 12-14% of Apple's global shipments by 2023 and could reach 20-25% by next year. Currently, Foxconn dominates iPhone production in India, but with Tata Group entering the market, this is expected to change. This move is seen as strengthening Apple's relationship with the Indian government and benefiting future sales. India has become an important market for Apple, which recently opened retail stores and aims to expand its services portfolio in the country. Financial incentives from the Indian government have encouraged companies like Apple to establish manufacturing operations in India. Looking ahead, Kuo expects Apple to produce the standard iPhone 17 in India by the second half of next year. Overall, India plays a crucial role in Apple's expansion plans and diversification of manufacturing bases.
The India-made iPhone is set to have a significant impact on Apple’s global shipments in the next few years, according to a leading analyst. Ming-Chi Kuo of TF International Securities predicts that the India-made iPhones will make up around 12-14% of Apple’s global shipments by 2023. He also anticipates that the importance of the South Asian market to Apple will grow even further in the coming year.
Kuo believes that if conditions are favorable, Apple could increase its India-made iPhone shipments to comprise 20-25% of its global total by next year. This projection aligns with an earlier forecast from JP Morgan, which suggested that Apple might shift 25% of its total iPhone production to India by 2025.
Currently, Foxconn dominates India’s iPhone production capacity, accounting for 75-80%. However, this dynamic is expected to shift as Tata Group, an Indian conglomerate, enters the scene and begins manufacturing iPhones at the Wistron production line it has acquired in the country. With Tata joining as an iPhone assembler, Kuo believes that this move will strengthen Apple’s relationship with the Indian government and benefit future sales not only of iPhones but also other products in India. It is seen as critical to Apple’s growth over the next decade.
India is increasingly becoming a key market for Apple. The company recently opened two official retail stores in India and aims to expand its services portfolio in the country. It has also engaged with HDFC Bank to explore launching Apple Pay in India.
In terms of sales figures, Counterpoint Research reports that between July and September of this year alone, over 2.5 million iPhone units were shipped in India, marking Apple’s best quarter ever in this market.
The Indian government under Prime Minister Narendra Modi has been actively encouraging major companies like Google and Apple to expand their businesses in India. Financial incentives worth billions of dollars have been offered to attract global companies to establish manufacturing operations in the country, as many firms are looking to diversify their manufacturing away from China in a strategy often referred to as “China + 1”.
Looking ahead, Kuo expects Apple to begin production of the standard iPhone 17, set to launch in the second half of 2025, in India by the second half of next year. This will be Apple’s first instance of initiating the development of a new iPhone model outside China. Kuo explains that this decision was made because the standard iPhone has a less complex design, reducing design risk.
In conclusion, Apple is making significant moves in India with its manufacturing operations and retail presence. The growth of India-made iPhones is expected to impact Apple’s global shipments, with projections indicating substantial market share for India. As Apple looks toward the future and aims to diversify its manufacturing bases, it is clear that India will play a crucial role in its expansion plans.
Original article posted by Fox News
