Saturday, June 3, 2023

iPhone 16 Pro Max will be made in India, shockingly without Foxconn’s help

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Apple has reportedly shared the New Product Information (NPI) of the iPhone 16 Pro Max with Luxshare. Apple analyst Ming-Chi Kuo says Luxshare expects to benefit from setting up a unit in India. It would manufacture the top-end iPhone 16 series phone with this exclusive knowledge. But there’s more to this story. On one hand, this assures Apple’s long-term investment in the country. It also suggests Apple seems to have shaken hands with a different player than its long-time partner Foxconn. 

Foxconn hasn’t got the iPhone 16 Pro Max NPI and here’s what that makes us think.

Apple, why no love for Foxconn?

Foxconn has been a long-time partner (since 2000) and a major supplier of Apple. It manufactures or assembles several key Apple products such as iPhones, iPads, and MacBooks. However, it is no longer Apple’s only iPhone manufacturer in India. Luxshare enters the ring. It has received exclusive knowledge about iPhone 16 Pro Max known as NPI. This will be used from the ideation stage to the final stage wherein the iPhone is ready for sale.

Mr Kuo notes Luxshare will benefit big from this deal. It would double down by establishing a factory in India wherein it could make the iPhone 16 Pro Max based on the NPI it has got.

As the country’s iPhone business booms, Luxshare will get a big piece of the pie. It could start seeing the results as early as 2H23. But, things won’t be easy as per some estimates.

Also Read: Apple AirPods will be made in Telangana, thanks to new Foxconn plant

iPhone 16 Pro Max

Therefore, it will be helped by Apple in this stride. The Cupertino-giant will arbitrate with the Indian government and try to get Luxshare some aid in the form of a PLI scheme or help it with a joint venture partner.

As per Kuo, the profits will see a spike once the annual iPhone shipments cross 30 million units. Notably, Luxshare is estimating 45–50 million iPhones this year. For the unversed, it has already got the iPhone 15 Plus NPI and will have the vanilla iPhone 15 and the 15 Pro Max as a second supply.

Also Read: Cheaper iPhones on the way? Apple is actively looking to increase production in India

Luxshare also gained from the Foxconn Zhengzhou incident last year. That is when Apple decided to share some of the workload and Luxshare passed with flying colours in terms of R&D, production capability, and yield.

As for Apple, it diversifies its risk with this move. It will be able to adapt quickly to market changes and uncertainties. There is also the case of increased efficiency that comes with new players and competition. Even local manufacturers in the country could get in the ring eventually.

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