Apple Inc. is making significant strides in India, with its iPhone exports from the country surging by a third in the six months ending September, Bloomberg reports.
The move signifies a growing reliance on India as a manufacturing hub, particularly amid increasing geopolitical tensions and economic challenges in China.
According to sources familiar with the matter, Apple exported nearly $6 billion worth of India-made iPhones in the period, marking a 33% increase year-on-year. This puts annual exports on track to surpass $10 billion, a major milestone for the tech giant.
Apple’s expansion in India is fueled by a combination of factors, including attractive local subsidies, a skilled workforce, and the country’s burgeoning technological capabilities. India is a crucial component of Apple’s strategy to mitigate its reliance on China, where risks have escalated alongside strained US-China relations.
Three of Apple’s key suppliers – Foxconn Technology Group, Pegatron Corp., and Tata Electronics – are responsible for assembling iPhones in southern India. Foxconn’s local unit, based near Chennai, is the largest supplier in India, contributing to half of the country’s iPhone exports.
Tata Group, a conglomerate with diverse interests, has emerged as a major player in the Indian iPhone assembly scene. Its electronics arm exported about $1.7 billion worth of iPhones from its factory in Karnataka from April to September. Tata acquired this unit from Wistron Corp. last year, becoming the first Indian assembler of Apple’s flagship product.
The figures reflect the estimated factory gate value of the devices, not the retail price.
IPhones dominate India’s smartphone exports, pushing the category to become the leading export to the US, reaching $2.88 billion in the first five months of the current fiscal year, according to federal trade ministry data. This is a dramatic increase from just $5.2 million five years ago, before Apple expanded its manufacturing operations in India.
While Apple still holds a relatively small share (just under 7%) of India’s smartphone market, dominated by Chinese brands like Xiaomi, Oppo, and Vivo, the company is making significant investments in the region.
The Modi government’s subsidies have enabled Apple to assemble its premium iPhone 16 Pro and Pro Max models, featuring advanced cameras and titanium bodies, in India this year. The company is also aggressively expanding its retail presence, planning new stores in major tech hubs like Bangalore and Pune.
Last year, Apple opened its first stores in Mumbai and New Delhi, accompanied by extensive marketing campaigns and an aggressive online sales push. This, coupled with a growing Indian middle class eager to own Apple products, propelled Apple’s annual India revenue to a record $8 billion in the fiscal year ending March.
Apple’s burgeoning success in India contrasts with its fading fortunes in China, whose economy has been impacted by stringent Covid-19 lockdowns and a property crisis. While China remains crucial for Apple’s manufacturing and sales, India is rapidly becoming a key growth engine for the company.
In the fiscal year ending March 2024, Apple assembled $14 billion worth of iPhones in India, doubling its production and accelerating its diversification efforts. Of that, around $10 billion worth of iPhones were exported.
