Infomalaya

In the last fiscal year, Apple’s iPhone production in India surged to $14 billion – Cupertino’s plan to reduce its dependency on China is set in motion. The behemoth now manufactures approximately 14% – or 1 in 7 – of its iPhones in India, according to sources who wished to remain anonymous (via Bloomberg).Apple’s strategy to decrease its reliance on Chinese manufacturing comes amidst growing geopolitical tensions, despite China still being the primary manufacturing hub and its largest international market for iPhones.

The said significant boost in manufacturing in India represents a victory for Prime Minister Narendra Modi’s administration, which has offered financial incentives to attract foreign companies like Apple to upscale their manufacturing presence. This move has reportedly created 150,000 direct jobs at Apple’s supplier facilities.

Foxconn and Pegatron were responsible for assembling nearly 67% and 17% of the iPhones produced in India for the fiscal year ending in March 2024. The rest were manufactured at Wistron Corp.’s facility in Karnataka, now under the ownership of Tata Group, which aims to establish one of the largest iPhone assembly plants in the country. The mentioned financial figures pertain to the estimated factory value of these iPhones, not their retail prices. Apple has not provided comments on these details.

Apple’s CEO, Tim Cook, has tactfully managed relations with Chinese officials amid the company’s geographic diversification, even visiting China to engage with the commerce minister and inaugurate a new store in Shanghai.

Currently, Apple manufactures a range of iPhone models in India, from the iPhone 12 to the iPhone 15, excluding the more advanced Pro and Pro Max models. Most of these devices are exported from India, a market where Apple claims about 6% share amidst competition from more affordable Chinese smartphones.

India’s market is one of the fastest-growing globally, driven by an expanding middle class, increasing internet access, and robust government support. Apple has capitalized on this growth by opening its first two stores in New Delhi and Mumbai last year, with plans to launch three more by 2027.