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Apple’s iPhone production in India soared to $14 billion last fiscal year, setting in motion Cupertino’s plans to reduce dependence on China. The giant company currently makes about 14% of its iPhones (1 in 7) in India, according to sources who requested anonymity (via Bloomberg). Apple’s strategy to reduce costs comes amid rising geopolitical tensions, even as China remains on the rise. It is the main manufacturing center and largest international market for the iPhone.
The major boost to manufacturing in India marks a victory for Prime Minister Narendra Modi’s government, which has offered financial incentives to attract foreign companies like Apple to boost its manufacturing presence. The move reportedly created 150,000 direct jobs at Apple supplier facilities.
Foxconn and Pegatron were responsible for assembling almost 67% and 17% of iPhones produced in India in the financial year ended March 2024, respectively. The rest were manufactured at Wistron’s facility in Karnataka, which is now under the ownership of the Tata Group. The company aims to establish one of the largest iPhone assembly factories in Japan. The financial figures mentioned refer to the estimated factory value of these iPhones and not the retail price. Apple has not provided comment on these details.
Apple CEO Tim Cook has deftly managed relationships with Chinese officials as the company diversifies geographically, meeting with the commerce minister and opening a new store in Shanghai. I have also visited China.
Currently, Apple manufactures a wide range of iPhone models in India, from iPhone 12 to iPhone 15, except for the more advanced Pro and Pro Max models. Most of these devices are exported from India, a market where Apple claims around 6% share amid competition from more affordable Chinese smartphones. The Indian market is one of the fastest growing markets in the world, driven by a growing middle class, increasing internet access, and robust infrastructure. Government support. Apple has capitalized on this growth by opening its first two stores in New Delhi and Mumbai last year, and plans to open three more by 2027.
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