Apple now manufactures approximately 14% of its iPhones in India, showcasing a significant boost in the company’s effort to reduce its reliance on Chinese production facilities, according to information from Bloomberg.
This increase translates to $14 billion worth of iPhones, meaning that one out of every seven Apple smartphones is now assembled in the South Asian country. The models being manufactured in India range from the iPhone 12 to the latest iPhone 15, with the exception of the more high-end Pro and Pro Max versions.
The expansion into Indian manufacturing aligns with Apple’s response to Prime Minister Narendra Modi’s “Made in India” campaign. This initiative demands that foreign companies must produce or manufacture 30% of their products within India to be sold in the local market.
Apple’s increased manufacturing presence in India is a direct result of this policy and has been further encouraged by financial incentives offered by the Indian government. These efforts are part of Modi’s broader ambition to position India as a leading manufacturing hub on the global stage.
This surge in iPhone production within India has not only supported Modi’s vision but has also generated approximately 150,000 direct jobs at Apple’s supplier facilities. Leading the charge in iPhone assembly in India for the fiscal year ending in March 2024 were Foxconn and Pegatron, responsible for 67% and 17% of the production, respectively, with Wistron handling the remainder, as per Bloomberg’s sources.
Despite China remaining as Apple’s primary manufacturing hub and its most significant market outside of the United States, the tech giant has faced challenges there, including declining revenues. This downturn is partly attributed to the rise of local competitors like Huawei and restrictions imposed by the Chinese government, including a ban on iPhone use in state-run agencies.
Apple’s strategic shift towards India not only reflects an attempt to mitigate risks associated with geopolitical tensions and potential supply chain disruptions, but also capitalizes on India’s rapidly expanding smartphone market. Apple’s commitment to India was further demonstrated last year with the opening of its first retail stores in Mumbai and New Delhi, marking a significant milestone in the company’s investment and presence in the country.
