 "Apple exported $6 billion worth of India-made iPhones as tech giant continues to shift away from China")
Apple’s strategy to reduce its reliance on China is gathering steam, with the tech giant exporting nearly $6 billion worth of India-made iPhones between April and September 2024.
This represents a one-third increase in value compared to the same period last year, setting Apple on track to exceed $10 billion in exports by the end of the fiscal year.
Apple has been expanding its manufacturing base in India rapidly, leveraging local subsidies, skilled labour, and the country’s technological progress. India has become a key part of Apple’s plan to diversify away from China amidst growing geopolitical tensions between Beijing and Washington.
Three key suppliers — Foxconn Technology Group, Pegatron Corp., and India’s Tata Electronics—assemble iPhones in southern India. Foxconn’s facility near Chennai plays the most significant role, accounting for about half of India’s iPhone exports.
Meanwhile, Tata Group has emerged as an important player, producing around $1.7 billion worth of iPhones from its Karnataka plant over the last six months. Tata took over the factory from Wistron Corp. last year, becoming the first Indian company to assemble Apple’s flagship devices.
Smartphones lead India’s exports to the US
India’s growing iPhone production has reshaped the country’s smartphone export landscape. iPhones now dominate India’s smartphone exports, making them the top product category shipped to the US.
In the first five months of the fiscal year, smartphone exports to the US totalled $2.88 billion, a remarkable leap from just $5.2 million five years ago, before Apple ramped up local production.
Impact Shorts
More ShortsWhile Apple still holds under 7 per cent of India’s smartphone market, where Chinese brands like Xiaomi, Oppo, and Vivo dominate, the company is betting big on India’s potential. Subsidies from Prime Minister Narendra Modi’s government have allowed Apple to produce high-end models like the iPhone 16 Pro and Pro Max, featuring advanced cameras and titanium bodies, in India for the first time.
Apple expanding it’s retail presence
Apple has also been busy expanding its retail footprint. After opening its first flagship stores in Mumbai and Delhi in 2023, the company is now eyeing new locations in Bangalore and Pune. These grand openings, combined with aggressive online sales strategies and a growing middle class eager to own Apple products, boosted Apple’s India revenue to a record $8 billion in the year ending March 2024.
India’s rise, China’s slowdown
Apple’s growth in India stands in contrast to its slowing momentum in China, where economic challenges following Covid-19 lockdowns and a property crisis have affected sales. However, China remains critical for both manufacturing and sales, and India is unlikely to replace it as Apple’s primary market anytime soon.
During the fiscal year ending March 2024, Apple assembled $14 billion worth of iPhones in India, doubling its production from the previous year. Of that, about $10 billion worth was exported, highlighting the company’s accelerated efforts to shift some of its operations away from China and tap into India’s potential as a manufacturing hub.
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