Apple Inc. has significantly ramped up its iPhone production in India, reaching an output valued at $14 billion in fiscal 2024, as per Bloomberg News. This strategic shift sees approximately 14% of Apple's flagship devices, or nearly one in every seven iPhones, now being manufactured in India. The move is part of Apple's broader strategy to diversify its production base beyond China amidst the ongoing geopolitical tensions between Beijing and Washington.
The majority of India's iPhone production is spearheaded by Foxconn Technology Group, which is responsible for assembling about 67% of these devices. Taiwanese company Pegatron Corp follows with a contribution of around 17%, while the remaining production is handled by the Tata Group-owned Wistron Corp's facility in Karnataka, southern India.
This diversification effort comes in the wake of disruptions faced by Apple in China, including a significant incident in 2022 where a workers' revolt at its largest iPhone factory in China led to substantial financial losses estimated at $1 billion per week. Since this event, Apple has been actively encouraging its suppliers to shift some aspects of production, such as smartphone batteries, to India and to increase the overall manufacturing capacity in the country.
In addition to production shifts, Apple's engagement with India extends to the retail front. Following a meeting between Apple CEO Tim Cook and Indian Prime Minister Narendra Modi, Cook expressed optimism about India's market potential, calling it a "huge opportunity." Apple inaugurated its first retail stores in Mumbai and New Delhi last year and has plans to open three more stores by 2027.
Despite Apple's significant investment in Indian manufacturing and retail, the tech giant currently holds about 6% of India's smartphone market, with the sector largely dominated by more affordable Chinese brands. The models produced in India range from the iPhone 12 to the base iPhone 15, excluding the higher-end iPhone 15 Pro and Pro Max models.
Apple's strategic pivot to India not only serves to mitigate risks associated with over-reliance on Chinese manufacturing but also taps into the vast potential of the Indian market. As Apple continues to expand its manufacturing footprint in India, it is also contributing to the growth of the local tech ecosystem, fostering stronger ties with local conglomerates like the Tata Group, and laying the groundwork for a more diversified and resilient global supply chain.
