Reflecting a push to expand manufacturing and reduce reliance on China, Apple’s iPhone exports from India surged 33% to nearly $6 billion in six months.
Apple reportedly increased its iPhone exports from India, with a 33% rise in the six months ending in September. According to the Economic Times, Apple exported nearly $6 billion worth of iPhones produced in India during this period.
The report stated that this surge highlights the company’s strategy to boost manufacturing in India and decrease its reliance on China. If the trend continues, annual exports are expected to exceed $10 billion for the fiscal year 2024.
Apple is rapidly expanding its manufacturing footprint in India, leveraging local subsidies, a skilled workforce, and technological advancements. It is also aiming to mitigate risks associated with its operations in China amid rising tensions between Beijing and Washington.
Three of Apple’s suppliers—Taiwan’s Foxconn Technology Group and Pegatron Corp., along with India’s Tata Electronics—assemble iPhones in southern India. Foxconn’s facility near Chennai is the largest in the country and is responsible for about half of India’s iPhone exports.
Between April and September, Tata Electronics exported approximately $1.7 billion worth of iPhones from its Karnataka factory. Tata acquired this manufacturing unit from Wistron Corp. last year, becoming the first Indian assembler of Apple’s flagship product.
However, none of the stakeholders in India’s iPhone export chain commented on this matter officially,
According to government trade data, iPhones are the primary drivers of India’s smartphone exports, helping the category emerge as the leading export to the US, valued at $2.88 billion in the first five months of this fiscal year. Five years ago, prior to Apple’s manufacturing expansion in the country, India’s smartphone exports to the US were only $5.2 million.
Despite this growth, Apple holds just under 7% of India’s smartphone market, which is largely dominated by Chinese brands like Xiaomi, Oppo, and Vivo. Nonetheless, Apple is making significant investments in the Indian market.
Subsidies from Prime Minister Narendra Modi’s government have facilitated the assembly of Apple’s premium iPhone 16 Pro and Pro Max models in India this year. The company is also looking to open new retail locations in Bangalore and Pune. Last year, CEO Tim Cook inaugurated Apple’s first stores in Mumbai and New Delhi.
The opening of these stores, aggressive marketing and a growing middle class eager for Apple products contributed to a record $8 billion in revenue for the company in India during the fiscal year ending in March.
Analysts at Bloomberg Intelligence predict that iPhone sales in India could reach $33 billion by 2030, driven mainly by the increasing purchasing power of the middle class and a growing reliance on payment plans.
