Apple is making a significant move by starting to manufacture its upcoming iPhone 16 Pro models in India, according to a Bloomberg report. This step is part of Apple’s broader strategy to increase its manufacturing presence in India. However, for Indian consumers, the key question is whether this local production will lead to cheaper iPhone Pro models in the country.
Prabhu Ram, Vice President of the Industry Research Group (IRG) at CyberMedia Research (CMR), shared his insights with Business Today, suggesting that while local production might result in some price reductions, it’s unlikely to have a major impact on the retail prices of these devices. He pointed out that broader economic factors still play a significant role in determining the final prices.
Similarly, Navkendar Singh, Associate Vice President at IDC, mentioned that the overall cost of iPhones in India will likely remain unaffected. He explained that even though the phones are being assembled locally, most of the components are still imported in completely knocked down (CKD) kits, and the added value in India is less than 10% of the total iPhone value. Therefore, the high duties on these components keep the prices elevated.
On the other hand, Prachir Singh, a Senior Analyst at Counterpoint, highlighted that while the base price of iPhones may stay consistent, consumers can expect significant discounts and offers, especially during festive seasons. Apple has been known for its aggressive promotions during such times, and this trend is likely to continue.
Although Apple has yet to officially launch the made-in-India Pro models, Google has already announced that it is manufacturing its Pixel 8 phones in India, with plans to export them to the U.S. Navkendar Singh noted that this shift in manufacturing is part of a broader trend where companies are looking to reduce their reliance on China. He emphasized that the Indian government has been proactive in creating a favorable environment to attract such investments, with initiatives aimed at meeting both domestic demand and boosting exports.
India’s relatively lower operational costs and a technically skilled workforce make it an attractive location for electronics manufacturing. Singh also mentioned that India is poised to become a crucial part of the global electronics value chain in the coming decades. As a result, companies are eager to establish a strong manufacturing presence in India early on to capitalize on future opportunities, both in domestic markets and as an export hub.