Apple analyst Ming-Chi Kuo released new research notes this morning that indicates that Apple is preparing to dive deeper into the Indian market.

Kuo's Research and Predictions are as follows:

• Apple is expected to help Luxshare set up production lines in India, and Luxshare will benefit from the growth of the Indian market and supply chain in the coming years.
• Luxshare has obtained the NPI for the highest-end iPhone 16 model (Pro Max) in 2024. This is the first time that Foxconn doesn’t win the highest-level iPhone assembly NPI (New Product Introduction).
• Luxshare’s iPhone business will see significant profit growth from 2H23.

• Research further suggests that Apple will negotiate with the Indian government to help Luxshare set up production lines in India with solutions such as a joint venture.
• Based on experience with iPhone assembly, profits will improve significantly once shipments exceed 30 million units per year. Luxshare expects to ship 45–50 million iPhones in 2023 (up from approximately 20 million in 2022), with the iPhone 15 Plus NPI already secured and the 15 and 15 Pro Max as a second supply.
• Apple has transferred some iPhone 14 Pro Max orders to Luxshare for risk diversification after the Foxconn Zhengzhou incident in November 2022. Luxshare’s production yield improvement schedule for the iPhone 14 Pro Max is better than expected, so the company has been awarded the iPhone 16 Pro Max assembly NPI for 2024. It means that Apple believes that Luxshare’s R&D and production capabilities have reached the level of first-tier suppliers. Luxshare’s iPhone business profit will also benefit from this improved capability.
• The iPhone 16 assembly NPI for 2024 will be allocated to Luxshare (16 Pro Max), Foxconn (16 Pro and 16), and Pegatron (16 Plus). As a result, the unit price of iPhone shipments from Luxshare is expected to increase further in 2024. In addition, Luxshare’s vertical integration advantage will continue to expand and increase profits, as Luxshare will also benefit from Pegatron’s iPhone top module orders.