This story was first published on the Benzinga India portal.

In a groundbreaking move, Apple Inc. (NASDAQ:AAPL) is set to initiate the production of its iPhone 17 in India by the second half of 2024, said renowned analyst Ming-Chi Kuo. This is the first instance of a New Product Introduction (NPI) beginning outside China.

Apple will lead this initiative in partnership with contract manufacturers, such as Foxconn (Hon Hai), Pegatron, and the newly joined Tata Group, which acquired Wistron's production lines for a substantial $135 million. This strategic repositioning underlines Apple's aim to diversify its supply chain.

Kuo also pointed out Apple's objective to decrease its dependence on Foxconn's facilities in Zhengzhou and Taiyuan, China, by 35-45% and 75-85%, respectively, by 2024. He identifies this shift as a result of both, the expansion in India and Luxshare's escalating iPhone order allocations, as well as advancements in production automation.

Interestingly, Apple has chosen the standard iPhone model for this venture, due to its simple design, thus minimizing potential risks. Kuo optimistically states, "If the transition is seamless, we could see iPhones manufactured in India accounting for 20–25% of the global market by 2024."

In terms of groundwork, India contributed to 12-14% of total global iPhone shipments last year, with Foxconn holding the majority of the production capacity in the country.

Apple's collaboration with Tata Electronics, which took over Wistron's operations on Oct. 27, marks the incorporation of an Indian entity into Apple's supply chain. Kuo suggests that this partnership will strengthen Apple's relationship with the Indian government, leading to a surge in iPhone sales in India and driving Apple's growth in the upcoming decade.