On Tuesday, according to The Information, Apple Inc. for the first time placed the early manufacturing work of the next generation iPhone, namely the basic model of the iPhone 17, in a factory in India, responsible for the iPhone development at this stage. The basic model iPhone 17 with internal code name V57 is being developed at a factory operated by Foxconn Technology Group in the southern Indian city of Bangalore.

Current and former Apple employees stated that this work is the most challenging and resource-intensive part of Apple's product development, internally referred to as 'New Product Introduction' (NPI). The process involves adjusting the design and materials of the iPhone, testing different equipment and manufacturing processes to ensure that millions of iPhones can be produced with minimal defects at different locations every day. Most of this development work usually occurs between October and May.

Engineers from Apple and Foxconn are developing this device in the factory, many of whom are locally hired in India. If successful, Apple will determine the production steps of the iPhone 17 in India before next summer and start replication in secondary factories.

It is worth noting that due to the difficulty of scaling up for mass production, Apple often delays release dates, or even cancels the entire product.

So far, the related work in India is progressing smoothly. Reports cite insiders saying that the iPhone 17 has passed the early development stage called proto-1, where Foxconn uses different combinations of devices and suppliers on a production line to produce thousands of devices to test whether Foxconn's engineers in India can achieve the quality of early prototypes produced at Apple headquarters.

According to reports, in the six months ending in September, Apple exported iPhones from India worth nearly $6 billion, a one-third increase year-on-year. This indicates that the annual iPhone exports from India in the 2024 fiscal year are expected to exceed the $10 billion mark. The dollar values mentioned refer to the estimated factory prices of the devices, not the retail prices.

Apple is rapidly expanding its production network in India, leveraging local subsidies, skilled labor, and technological advancements. The subsidies provided by the Indian government have helped Apple assemble high-end iPhone 16 Pro and Pro Max models this year. These models feature better cameras and titanium metal bodies.

Apple's three suppliers - Taiwan's Foxconn Technology Group, Taiwan's Pegatron Corporation, and India's Tata Electronics, assemble iPhones in southern India. Foxconn's factory in India is located in the suburbs of Chennai, and is the largest Apple supplier in India, accounting for half of the country's iPhone exports.

Reportedly, from April to September, Tata company exported approximately $1.7 billion worth of iPhones from its factory in Karnataka state, India. Last year, Tata acquired this factory from Wistron in Taiwan, making it Apple's first assembly partner in India.

iPhones account for the majority of India's smart phone exports, helping this product category become one of the top five export products from India to the USA in the first five months of this fiscal year, reaching $2.88 billion. Five years ago, before Apple expanded its manufacturing business in India, the annual smart phone exports to the USA from India were only $5.2 million.

By the end of the fiscal year in March 2024, Apple assembled iPhones worth $14 billion in India, doubling the production.

Despite the significant growth in Apple's assembly and exports in India, Apple's market share for smart phones in India is less than 7%. The Indian smart phone market is mostly dominated by Chinese brands Xiaomi, OPPO, and Vivo. While the Indian market share is still relatively small in Apple's global market, Apple's investment in India is substantial.

Last year, Apple opened its first retail stores in India's financial center Mumbai and the capital New Delhi. Apple also plans to open new retail stores in India, including in the technology hub Bangalore in the south and the western city Pune.

Grand openings, aggressive marketing campaigns for new stores, active online sales promotions, and the rapid growth of the middle class eager to own Apple products helped Apple achieve a record annual revenue of $8 billion in India by March. Industry experts estimate that by 2030, Apple's sales in India could reach $33 billion, mainly due to the increasing purchasing power of the Indian middle class and the popularity of installment payment methods.

Editor/Lambor