10 April 2024 – Apple Inc. significantly ramped up its iPhone production in India, reaching $14 billion in assembly last fiscal year. This doubling of output signifies Apple’s strategic move to diversify its manufacturing beyond China, amid escalating geopolitical tensions and market challenges.
People familiar with the matter revealed that Apple now manufactures approximately 14% of its flagship iPhones in India, marking a notable increase in production volume. This acceleration in Indian manufacturing underscores Apple’s efforts to reduce its reliance on China, which remains its primary manufacturing hub and largest overseas market. However, China’s market dynamics, including declining revenues and regulatory challenges, have prompted Apple to seek alternative production locations.
The substantial increase in Indian iPhone production is seen as a success for Prime Minister Narendra Modi’s administration, which has actively incentivized foreign firms like Apple to invest in high-end manufacturing in India. The government’s efforts have resulted in the creation of thousands of direct jobs at Apple’s supplier facilities.
Key manufacturing partners such as Foxconn Technology Group, Pegatron Corp., and Wistron Corp. have played significant roles in assembling iPhones in India. Foxconn and Pegatron accounted for a significant portion of India-made iPhones, while Wistron’s facility in Karnataka, now under Tata Group’s management, has expanded to become one of the country’s largest iPhone assembly plants.
It’s important to note that the $14 billion figure represents the estimated value of the iPhones as they leave the factory, rather than their retail prices. Apple representatives declined to comment on this development.
