Exports of India-made iPhones reached nearly $6 billion, in the six months ending in September. This signals a strategic shift in Apple’s manufacturing and reducing dependence on China.
The robust growth trajectory suggests that Apple is on track to exceed $10 billion in iPhone exports in the fiscal year 2024.
This uptick follows Apple’s efforts to leverage India’s workforce, subsidies, and technology ecosystem as tensions between the US and China intensify.
Historically, Apple has relied on Chinese factories, but geopolitical tensions and supply chain issues, especially during the COVID-19 lockdown, highlighted the need for diversification.
This shift coincided with India's "Make in India" and Production-Linked Incentive (PLI) initiatives, which aim to attract high-tech manufacturing and establish India as a key global player in electronics. Apple lapped up the opportunity.
India’s PLI scheme incentivized manufacturers by offering financial support for companies meeting production goals, drawing major Apple suppliers such as Foxconn, Pegatron, and Wistron.
Initially, these suppliers were focused on India's domestic market, but recent investments and policy support have enabled India to become an export hub as well.
This year, Apple doubled its iPhone production in India to $14 billion, with exports comprising $10 billion, illustrating the company’s commitment to India as a vital part of its long-term strategy.
But despite these gains, Apple holds only 7% of the smartphone market in India, a segment largely dominated by Chinese brands like Xiaomi, Oppo, and Vivo.
That said, Apple’s popularity is on the rise among India’s middle class. To meet this demand, Apple opened flagship stores in Mumbai and New Delhi. More are planned in Bangalore and Pune. This will enhance its retail footprint and aspirations of capturing India’s emerging consumer class.
Apple’s focus on India has already paid off, with annual revenue in the region reaching a record $8 billion in the year ending March 2024.
The expansion of Apple’s presence in India, complemented by targeted marketing efforts and online sales, has further bolstered its revenues. Driven by the rising middle class and the growth of payment plans, analysts estimate that Apple’s sales in India could hit $33 billion by 2030.
While Apple continues to diversify its production base, China remains its largest manufacturing hub. The shift to India underscores a dependency on an alternative supply chain as China grapples with economic uncertainty.
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