Apple boosts iPhone exports from India by a third, reduces reliance on China
PTC Web Desk: Apple Inc.'s iPhone exports from India surged by one-third in the first half of the fiscal year, highlighting the company's growing focus on expanding its manufacturing base in the country and reducing its reliance on China. According to sources, the US tech giant exported nearly $6 billion worth of iPhones manufactured in India between April and September, marking a significant increase compared to the previous year. If this trend continues, annual exports could surpass $10 billion by the end of fiscal 2024.
Apple’s accelerated manufacturing growth in India is supported by favourable government policies, local subsidies, and a skilled workforce. India is playing a critical role in Apple's strategy to diversify production away from China, particularly amid escalating tensions between Beijing and Washington.
Several suppliers, including Taiwan's Foxconn Technology Group and Pegatron Corp., along with India’s Tata Electronics, are responsible for assembling iPhones in southern India. Foxconn’s Chennai unit remains the top contributor, accounting for half of India’s iPhone exports. Tata Electronics, a part of India’s Tata Group, exported about $1.7 billion in iPhones during the same period from its factory in Karnataka, making it the first Indian company to assemble iPhones after acquiring the unit from Wistron Corp. last year.
iPhones now represent the largest share of India’s smartphone exports, contributing significantly to the $2.88 billion worth of smartphones shipped to the U.S. in the first five months of this fiscal year. This growth is remarkable compared to five years ago when India's smartphone exports to the U.S. totaled only $5.2 million annually.
However, Apple holds just under 7% of India’s smartphone market, which is dominated by Chinese brands like Xiaomi, Oppo, and Vivo. Despite the relatively small market share, Apple continues to invest heavily in India. The Indian government’s production-linked incentives have enabled the company to assemble premium models like the iPhone 16 Pro and Pro Max locally. Additionally, Apple is planning to expand its retail footprint, with new stores expected in Bengaluru and Pune following the launch of its first outlets in Mumbai and New Delhi last year.
Apple’s growing presence in India contrasts with its challenges in China, where economic slowdowns and geopolitical tensions have affected its operations. While China remains a major hub for Apple’s production and sales, India’s role in the company’s global supply chain is becoming increasingly important. In the fiscal year ending March 2024, Apple assembled $14 billion worth of iPhones in India, doubling its production and exporting about $10 billion of these devices.
According to Bloomberg Intelligence, Apple’s sales in India could reach $33 billion by 2030, driven by a burgeoning middle class and increasing use of payment plans. While India is unlikely to overtake China as Apple's top market anytime soon, the company's strategic investments in the region are positioning it for long-term growth.
- With inputs from agencies
