iPhone 17 marks a major turning point in Apple's strategy

New Product Introduction (NPI) includes all activities within an organization to identify, develop, improve or launch a certain product or service. According to Mr. Kuo, the NPI process for iPhone 17 is likely to take place in India, marking a major turning point in Apple's strategy. For a long time, "Apple" has been conducting NPI in China.

iPhone production in India is expected to double in 2024. (Photo: Ming Chi Kuo)

In 2023, about 12-14% of iPhones sold globally will be manufactured in India, of which 75-80% will be handled by contractor Foxconn. Over time, this proportion is expected to increase, estimated at 20-25% by 2024.

The NPI relocation is therefore consistent with the downsizing of iPhone production in China, which has a significant impact on Foxconn’s Zhengzhou, Taiyuan, plant. Forecasts show a 35-45% and 75-85% decline next year, respectively. It also reflects the expansion of Luxshare, a mainland contractor, in iPhone production.

The standard iPhone 17, expected to launch in the second half of 2025, will begin production in India in the second half of 2024. This represents India's first foray into developing a new iPhone outside of China. The rationale behind the move is that the iPhone 17's design complexity is lower, thereby reducing the risks involved.

In addition, India's Tata Group has just become the new iPhone assembler after acquiring Wistron's production line. This cooperation underscores Apple's commitment to strengthening its relationship with the Indian Government.

As part of a larger strategy, it has the potential to boost sales of iPhones and Apple products in the South Asian country. It is positioned as a key element in the company's growth strategy over the next decade, representing a significant paradigm shift in manufacturing and international business dynamics.

The Indian government has been trying to attract investment in manufacturing in recent years by introducing a series of reforms, including tax incentives and subsidies. Infrastructure such as roads and ports has also been improved. Meanwhile, Apple wants to reduce its dependence on China. Its business has been disrupted by the Covid-19 lockdown there, and its supply chain has also come under scrutiny.

Apple CEO Tim Cook was in India to open the first two Apple Stores in the country. The US company is also preparing to open more stores in the country.

(According to Gizchina, Times of India)

Another Indian conglomerate jumps into iPhone production Indian conglomerate Tata Group will start manufacturing Apple's iPhone domestically after acquiring a factory from contractor Wistron (Taiwan, China).

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