Apple’s strategic push to diversify its manufacturing base is making significant headway, as a recent report highlights that more than 13% of iPhone units shipped in 2023 were assembled in India. This demonstrates Apple’s dedication to reducing its dependence on Chinese production and its resilience amid disruptions like the COVID-19 pandemic.
India’s Growing Role in iPhone Production
Ming-Chi Kuo, a renowned industry analyst, unveiled that approximately 12% to 14% of iPhones distributed globally in 2023 proudly bear the “Made in India” label. Among these shipments, Foxconn, one of Apple’s key manufacturing partners, accounted for a substantial 80% of the production capacity in the country.
Kuo’s projections suggest that by 2024, Foxconn’s production scale in Zhengzhou, China, will dwindle by 35% to 45%. In Taiyuan, the decrease is anticipated to be even more pronounced, ranging from 75% to 85%. Another manufacturing giant serving Apple, Luxshare, is also gradually shifting part of its production operations to India.
A Bold Move to Diversify
For years, Apple heavily relied on China for its iPhone manufacturing. However, this dependency became a vulnerability during the COVID-19 outbreak, forcing many iPhone assembly plants to temporarily shut down. The pandemic-related disruptions reportedly cost Apple a staggering billion dollars per week. Additionally, diplomatic tensions between the US government and China had ripple effects on Apple’s Chinese suppliers.
In response to these challenges, Apple has been diligently broadening its production network, investing in assembly facilities in Brazil and Vietnam. Yet, India is emerging as a prime candidate to eventually replace China on a global scale.
A Billion-Dollar Shift to India
Reports indicate that Apple has already shifted iPhone production valued at $7 billion to India. The tech giant aspires to increase this figure to a colossal $40 billion within the next five years. A remarkable milestone was reached this year when Apple commenced iPhone assembly in India, mere weeks after initiating production in China.
According to Kuo, Apple intends to make this a standard practice. By late 2024, the company may take the early stages of the iPhone 17’s development (expected to debut in 2025) to India, marking another substantial step towards decreasing its reliance on Chinese production.
