New Delhi: Apple is reportedly initiating the initial manufacturing phase of the iPhone 17, set for release next year, in India. This step is part of Apple’s broader strategy to diversify its supply chain beyond China, though no official confirmation has been made yet.
India Chosen for Initial Production Phase
The Information’s Wayne Ma reported that Apple is utilizing an Indian facility for the New Production Introduction (NPI) process of the iPhone 17 for the first time. This initial phase is crucial for determining how Cupertino-designed prototypes can be transformed into a scalable production model. The choice of an Indian factory highlights Apple’s ongoing efforts to reduce its reliance on China for manufacturing and diversify its supply chain.
Why Apple is Expanding Beyond China
Apple’s dependency on China for manufacturing has been well-documented. However, the company has steadily transferred some of its manufacturing tasks to Indian facilities, aiming to lessen its over-reliance on Chinese factories. In recent years, Apple has also started producing the latest iPhone models in regions like India and Vietnam, though most of its production remains China-based. Moving the NPI process for next year’s iPhone model outside China marks a significant shift for Apple.
The Challenges of the NPI Process
According to current and former Apple employees cited by The Information, the NPI phase is one of the most challenging and resource-intensive aspects of Apple’s product development. This process involves refining the iPhone’s design and materials while testing different tools and manufacturing methods to ensure mass production with minimal defects. The NPI process typically spans from October to May, highlighting Apple’s confidence in Indian engineers’ capabilities by entrusting them with this phase for the base model of the iPhone 17.
Analysts’ Take on the Development
The new report aligns with predictions from Ming-Chi Kuo, an analyst at TF Securities International, who forecasted in November 2023 that Apple would begin initial development of the iPhone 17 in India rather than China. Notably, the iPhone 17 is expected to launch in the fall of 2025.
This development marks a bold move by Apple, underscoring the increasing importance of India in its production ecosystem and its gradual pivot away from China in the coming years.