iPhone Exports From India Surge 33% as Apple Reduces China Reliance

Apple's iPhone exports from India reached nearly $6 billion in the six months through September, representing a 33% increase compared to the same period last year, according to Bloomberg. The growth puts Apple on track to exceed its fiscal 2024 export target of $10 billion from the region.

apple india
The increase in exports is a result of Apple's expanding manufacturing network in India, where the company has benefited from local subsidies, skilled labor, and improving technological infrastructure. Apple's three key iPhone suppliers in the country are Foxconn, Pegatron, and Tata Electronics.

Foxconn's Chennai-based unit leads production and accounts for half of India's iPhone exports. Tata Electronics, which acquired Wistron's manufacturing facility last year, exported approximately $1.7 billion in iPhones from its Karnataka factory between April and September.

The growth in iPhone manufacturing has significantly impacted India's export economy, according to the report. Smartphones have become the country's top export to the United States, and reached $2.88 billion in the first five months of the fiscal year – a dramatic increase from just $5.2 million in annual smartphone exports to the US five years ago.

Apple has since deepened its commitment to Indian manufacturing, producing iPhone 15 Pro models in the country. Apple has also expanded its retail presence by opening stores in Mumbai and New Delhi, which contributed to record annual revenue of $8 billion in India through March.

Apple's manufacturing expansion in India underlines Apple's strategy to diversify its supply chain and reduce its dependence on China, where geopolitical tensions with the US and economic challenges remain. That said, China remains Apple's primary manufacturing hub, and the company has also significantly expanded its research and development capabilities in what is the world's largest smartphone market.

Tag: India

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Top Rated Comments

Plutonius Avatar
9 months ago
Two major manufacturing countries is better than one but I don't consider it enough.

Is Apple going to wait for problems to start in India before continuing to diversify ?
Score: 7 Votes (Like | Disagree)
iMac The Knife Avatar
9 months ago
Congrats Tim Apple, for moving some production from one heavily polluting cesspool to another. But hey, at least you've removed the charging brick and headphones from the iPhone box to help "save the planet". ?
#courage
Score: 7 Votes (Like | Disagree)
adamw Avatar
9 months ago
Diversification with different countries and suppliers helps to keep the supply chain flowing if there is a problem in one geographic area.
Score: 6 Votes (Like | Disagree)
DHagan4755 Avatar
9 months ago
This is good news. The quicker Apple transitions away from the dominant production happening in China the better off the company will be in the long term.
Score: 5 Votes (Like | Disagree)
System603 Avatar
9 months ago
Great news after the not so good Apple's expanded Chinese research and development capabilities ('https://www.macrumors.com/2024/03/12/apple-to-expand-research-facilities-in-china/'), mentioned in the article.

Why?

* China's decade(s) long manufacturing hegemony
* the ever present need for risk diversification in manufacturing or here, more accurately, assembly
* I won’t even get into the whole "situation with/in China"


It’s not as if everything is sunshine and rainbows in India either, but still—great news!
Score: 5 Votes (Like | Disagree)
haruhiko Avatar
9 months ago
Bad Apple continues to exploit the poor workers in C.....

Whoops never mind.
Score: 3 Votes (Like | Disagree)