Apple Inc. has significantly increased its iPhone exports from India, reaching nearly $6 billion in the six months through September, marking a one-third increase from the previous year. This highlights Apple’s strategic shift to enhance its manufacturing presence in India and decrease its reliance on China amid escalating geopolitical tensions.
Apple capitalized on India’s skilled workforce, local subsidies, and technological advancements in a strategic expansion. This move aligns with efforts to mitigate risks associated with its extensive manufacturing dependencies in China.
Foxconn Technology Group, Pegatron Corp., and Tata Electronics, three of Apple’s key suppliers, have established assembly operations in southern India. Foxconn, located on the outskirts of Chennai, is the leading contributor responsible for half of India’s iPhone exports.
Tata Electronics, part of the Tata Group, also significantly exports approximately $1.7 billion of iPhones from its Karnataka facility between April and September. This facility, acquired from Wistron Corp. last year, marked Tata’s entry into assembling Apple’s flagship product.
Despite the considerable exports, Apple’s share in India’s smartphone market remains just under 7%. The market is primarily dominated by Chinese brands such as Xiaomi, Oppo, and Vivo. However, Apple is making substantial investments to tap into India’s market potential.
The Indian government’s subsidies have enabled the assembly of high-end iPhone models like the iPhone 16 Pro and Pro Max locally. Additionally, Apple is expanding its retail presence in India with new stores in Bangalore and Pune, following successful launches in Mumbai and New Delhi.
With annual revenues in India hitting a record $8 billion for the year ending March 2023, Apple’s growth in India contrasts sharply with its challenges in China, where economic issues have impacted its business. Nonetheless, China remains a crucial market for Apple, though its accelerated manufacturing capabilities in India, totalling $14 billion in the fiscal year 2024, underline its strategy to diversify production and reduce geopolitical risks.
