In a significant move, Apple, the tech behemoth, has begun initial manufacturing efforts for its next-generation iPhone, the iPhone 17, in India. This marks a groundbreaking shift for the company, as it has traditionally conducted this critical phase of development, known as ‘new product introduction’ (NPI), exclusively in China.
The NPI process, which typically spans from October to May, involves transforming prototype designs into mass-producible devices and rigorously testing materials, equipment, and manufacturing techniques. This year, Apple is undertaking this essential phase at Foxconn’s facility in Bengaluru, India.
Sources close to the matter, cited by The Information, revealed that Apple is currently developing the base model, internally codenamed ‘V57,’ in India. While the base iPhone 17 is making progress in India, Apple reportedly plans to continue developing the more advanced iPhone 17 Pro models and the ultra-thin iPhone 17 Air in China, where its established manufacturing expertise remains concentrated.
The base iPhone 17 has reportedly reached a crucial production milestone, termed ‘proto-1,’ signifying the manufacture of thousands of units to assess build quality. Apple is evaluating whether Indian engineers can replicate the quality standards achieved by its California headquarters.
This shift in manufacturing strategy is driven by Apple’s desire to reduce operational costs and mitigate potential risks associated with reliance on a single production location. The company aims to initiate new iPhone development sooner in locations closer to the final assembly sites, streamlining the entire process.
Apple and Foxconn engineers, including Indian personnel, are actively participating in the testing phases. If the early development phase proves successful, Apple might expand this manufacturing model to additional facilities, including those in China.
Apple has been steadily expanding its production in India since 2017, strategically reducing its dependence on China. The rising tensions between Beijing and Washington D.C. have heightened the risks of relying solely on China for manufacturing. Currently, India manufactures all four models of Apple’s latest iPhone 16 lineup, including the premium Pro versions.
India’s role as a manufacturing hub for Apple has grown exponentially, with the U.S. tech giant exporting nearly $6 billion (approximately ₹50,448 crore) worth of iPhones manufactured in India in the past year, representing a 30% jump from the previous year.
Beyond manufacturing, Apple is actively expanding its retail presence in India. The company is planning to hire 400 new employees for its upcoming stores in Bengaluru, Pune, Delhi-NCR, and Mumbai. Apple opened two flagship stores in India last year, one in Mumbai and the other in Delhi, signaling its commitment to the Indian market.
Apple’s decision to initiate iPhone 17 development in India signifies a significant shift in its global manufacturing strategy. It reflects the company’s efforts to diversify its production base, mitigate geopolitical risks, and potentially reduce operational costs. This move could have a profound impact on the Indian tech ecosystem and further bolster India’s position as a global manufacturing hub.
