Apple Expands iPhone Production to India with New iPhone 16e Model

Apple has officially announced that it will manufacture the new iPhone 16e in India, alongside its ongoing production efforts in China. This confirmation comes from the company in response to inquiries from the Mumbai-based publication, The Economic Times. According to Apple, the iPhone 16e will be produced for both the domestic market and export purposes, reflecting the company's commitment to expanding its manufacturing capabilities in India.

India is rapidly becoming Apple's second most important production hub, following China. The company has established several large-scale factories in the country through partnerships with manufacturers such as Foxconn. Recent developments have seen China attempt to complicate Apple's manufacturing expansion by imposing restrictions on the exportation of machinery and limiting the travel of Chinese workers needed for factory setup. This has prompted Apple to invest heavily in building local expertise and infrastructure.

In addition to being a manufacturing site, India is also poised to be a significant market for Apple products. The country has recently surpassed China in population, providing a vast customer base. Apple is strategically opening retail stores and expanding its online presence to cater to India's growing middle class, which is expected to increase demand for products like the iPhone, iPad, and Mac.

Despite the high price point of the iPhone 16e, which is set at approximately EUR660 in India--slightly less than the EUR699 price in Europe--the model is not considered a typical entry-level option. The previous SE 3 model was launched at a more accessible price of EUR519, raising questions about the affordability of the new variant.

Apple's substantial investments in Indian production facilities are aimed at reducing its reliance on China as a manufacturing base. However, the specific countries to which these Indian-made iPhones will be exported have not yet been disclosed, although it is expected that European markets will continue to receive products manufactured in China.