Apple Inc. has significantly boosted its India-manufactured iPhone exports by roughly a third in the past six months, marking a strategic shift to diversify production outside of China. The tech giant exported approximately $6 billion in iPhones from India during this period, setting the company on track to exceed $10 billion in exports for fiscal 2024, according to sources with knowledge of the matter.
Taking advantage of India’s supportive policies, skilled labor, and evolving tech infrastructure, Apple is rapidly expanding its production footprint in the country. This shift aligns with its plan to reduce its dependency on China amidst escalating geopolitical tensions between Beijing and Washington.
Key suppliers, including Taiwan’s Foxconn Technology Group and Pegatron Corp., along with India’s Tata Electronics, assemble iPhones in southern India. Foxconn’s facility near Chennai plays a central role, contributing about half of India’s iPhone exports. Tata Electronics, which acquired Wistron’s Karnataka factory, exported approximately $1.7 billion in iPhones from April to September, establishing itself as India’s first homegrown assembler of Apple’s flagship product.
Indian-made iPhones now dominate the country’s smartphone exports, propelling this category to become the leading export to the US, valued at $2.88 billion in the first five months of this fiscal year. This represents a huge leap from five years ago when annual smartphone exports to the US from India were just $5.2 million.
Although Apple holds a modest 7% share in India’s smartphone market, which is primarily occupied by Chinese brands like Xiaomi, Oppo, and Vivo, the company sees tremendous growth potential. The Modi administration’s subsidies further facilitated local production of Apple’s high-end iPhone 16 Pro and Pro Max models. India’s middle class and its increasing purchasing power, along with flexible payment options, have driven Apple’s revenue in the country to a record $8 billion for the year ending in March.
Bloomberg Intelligence analysts predict that Apple’s India sales could reach $33 billion by 2030, emphasizing India’s crucial role in Apple’s global strategy. The company produced $14 billion worth of iPhones in India for fiscal 2024, with exports amounting to about $10 billion. While China remains Apple’s primary manufacturing base, India’s contribution to Apple’s supply chain is expected to keep expanding.
