Tech giant’s move signals shift away from China amid global supply chain concerns.
Apple has significantly ramped up its iPhone production in India, now assembling as much as 14% of its flagship devices in the country, according to reports from Bloomberg. This move underscores the company’s accelerating efforts to diversify its manufacturing beyond China, marking a doubling of production compared to the previous fiscal year.
The $14 billion worth of assembled iPhones in India accounts for approximately 1 in 7 of Apple’s flagship devices. Models currently being assembled in India range from the iPhone 12 to the latest iPhone 15, excluding the premium Pro and Pro Max variants.
The expansion of Apple’s manufacturing presence in India aligns with Prime Minister Narendra Modi’s “Made in India” initiative, which aims to boost local manufacturing. Under this initiative, foreign companies are required to manufacture or produce at least 30% of the products they sell within the country.
According to government sources, Apple’s manufacturing growth in India has resulted in the creation of 150,000 direct jobs at the company’s suppliers. This development aligns with Modi’s vision of transforming India into a global manufacturing hub and underscores the success of the incentives provided to foreign companies to invest in the country.
Key players in iPhone assembly in India include Foxconn, responsible for nearly 67% of production, followed by Pegatron with around 17%. The remaining devices are assembled by Wistron. While China remains Apple’s primary iPhone assembly base and largest overseas market, the company’s revenues have faced challenges in the region due to increased competition from local vendors like Huawei and government restrictions on iPhone usage in state workplaces.
Apple’s decision to diversify its manufacturing away from China reflects its recognition of growing geopolitical tensions and the imperative for supply chain resilience. Additionally, the move towards India capitalizes on the country’s burgeoning smartphone market. Last year, Apple further signaled its commitment to the Indian market by opening its first two retail stores in Mumbai and New Delhi.
