Athira Sethu
Kochi, 30 October 2024
Apple has ramped up iPhone production in India, where exports have jumped by nearly one-third in the past six months up to September. The increase is part of Apple’s broader push to reduce its reliance on China for manufacturing, according to a report by Bloomberg.
Sources close to the matter said that Apple exported nearly $6 billion worth of iPhones made in India in this period, putting annual exports on track to exceed $10 billion this fiscal year, a notable rise from last year’s figures, the report said.
India is gathering more attraction as a production hub because of local incentives, availability of skilled labor, and technological upgradation. Apple is adding manufacturing lines while teaming up with major suppliers including Foxconn Technology Group, Pegatron Corp., and Tata Electronics, all of which put together iPhones in southern India. Foxconn’s plant in Sriperumbudur is the biggest supplier from this region and accounts for about half of iPhone shipments from India.
Tata Electronics, a part of the renowned Tata Group, has emerged as a key player for Apple’s Indian production. As per Bloomberg, this Karnataka-based factory exported about $1.7 billion in iPhones in the last six months. This facility was bought by Tata from Wistron Corp. last year and has emerged as India’s first local iPhone assembler.
It can be visually seen through the export level of mobile phones from India to the U.S., as iPhones are now grasping a huge percentage share. Statistics from India’s trade ministry indicate that in the first five months this fiscal year, iPhone exports to the U.S reached $2.88 billion and five years ago, exported just $5.2 million.
As of now, Apple stands at a meager 7% of the Indian smartphone market dominated by brands like Xiaomi, Oppo, and Vivo. However, its popularity is increasing with the higher middle class that is more and more preferring premium brands.
Other significant government support Apple has received is in assembling advanced models such as the iPhone 16 Pro and Pro Max here in India. These expensive devices, with their advanced camera capability and titanium bodies, make up a significant portion of its new commitment to expand its store presence in the country. Moreover, Apple also launched its first stores in the countries’ major cities of Mumbai and New Delhi, and later will follow up with other stores across the cities of Bangalore and Pune.
