Apple to start manufacturing top-of-the-line iPhone Pro models in India; how will it impact pricing?

Apple Inc. is set to start manufacturing its top-tier iPhone Pro models in India for the first time this year. This marks a significant shift in the company's operations and could impact the prices of these premium phones in the country. According to a report by Bloomberg, Apple's partner, Foxconn, will begin assembling the new iPhone 16 Pro and Pro Max at its factory in Tamil Nadu.

Production will start just weeks after the global launch this autumn, with Foxconn already training thousands of workers to meet the deadline. This is the first instance of Apple producing its most expensive iPhones in India, underlining the country's growing importance in Apple's global plans.

Since 2021, Apple has been increasing its manufacturing in India, aided by financial incentives from Prime Minister Narendra Modi's government to attract high-tech production. A major advantage of making iPhones in India could be reduced prices for Indian consumers. Currently, imported iPhones are costly due to high import taxes. By producing locally, Apple might be able to lower prices by up to 10 per cent compared to imported models, according to the report.

However, even with local production, the iPhone 16 Pro and Pro Max are still likely to be pricier in India than in some other countries, owing to the high cost of importing advanced parts and other local taxes.

Although Apple will start making the iPhone Pro models in India, most of these phones will be exported to regions like Europe, the Middle East, and the US. The demand for these premium models in India is currently lower, though it could rise during the upcoming festive season.

India is becoming a crucial market for Apple, with sales nearing a record $8 billion a year. Some experts predict this could grow to $33 billion by 2030 as more Indians purchase high-end products. Apple's decision to manufacture the iPhone Pro models in India demonstrates its commitment to the country and its belief in India's future as both a manufacturing hub and a major market.