According to Bloomberg News, Apple Inc has manufactured iPhones worth $14 billion in India during fiscal 2024.
The report indicates that Apple now produces approximately 14% of its flagship devices from India, equivalent to about 1 in 7 iPhones, as stated by individuals familiar with the situation.
Foxconn was responsible for assembling nearly 67% of the iPhones made in India, while Pegatron Corp accounted for approximately 17%, the Bloomberg report added. The remaining iPhones were produced at Wistron Corp’s plant in the southern Indian state of Karnataka, which was taken over by the Tata Group last year.
Apple did not provide an immediate response to a request for comment from Reuters.
The company is evidently broadening its supply chain beyond China, particularly in light of geopolitical tensions between Beijing and Washington. Despite this diversification effort, China still retains its position as the primary hub for iPhone production worldwide.
Apple now makes as much as 14% or about 1 in 7 of its marquee devices from India, the report said, citing people familiar with the matter.
The Indian iPhone production has surged to $14 billion as Apple shifts its manufacturing focus away from China.
The move comes as Apple is increasingly diversifying its supply chain beyond China, amidst geopolitical tensions between Beijing and Washington. Despite this effort, China remains the largest hub for iPhone manufacturing globally.
Future plans of iPhone branding in India
The Indian consumer goods conglomerate is additionally constructing another plant in Hosur, located in Tamil Nadu. Pegatron is expected to emerge as its joint venture partner in this endeavor.
Deeper Dive into Apple’s $14 Billion iPhone Production in India
Geopolitical Tensions and China Dependence:
One of the key drivers behind Apple’s push in India is the company’s desire to reduce its reliance on China for iPhone manufacturing. Rising geopolitical tensions between the US and China have cast a shadow over global supply chains, making diversification a strategic priority for Apple.
Challenges and Opportunities:
While $14 billion is a significant achievement, it’s important to note that India still manufactures a relatively small portion of iPhones compared to China. Here’s a closer look at the challenges and opportunities Apple faces in India:
Challenges:
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- Production Complexity: Currently, most iPhones produced in India are older or less complex models. Apple might face hurdles in replicating high-end iPhone production due to a less established supply chain ecosystem in India compared to China.
- Infrastructure and Efficiency: India’s manufacturing infrastructure is still developing. Streamlining logistics and achieving production efficiency comparable to China may take time.
Opportunities:
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- Government Support: The Indian government is actively promoting domestic manufacturing through initiatives like “Make in India.” This can provide Apple with continued support and incentives.
- Skilled Workforce: India has a large pool of skilled engineers and technicians, which can be a valuable asset for Apple in the long run.
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Impact on Indian Consumers
The long-term impact on iPhone prices for Indian consumers remains to be seen. While lower manufacturing 
costs can potentially lead to more competitive pricing, Apple might choose to maintain its profit margins initially. However, increased local production could lead to:
- Greater Availability: Improved production capacity in India could lead to better product availability and shorter wait times for iPhones.
- Focus on Mid-Range Phones: Apple might prioritize manufacturing more affordable iPhones in India to cater to the price-sensitive Indian market segment.
Future Expectations
Apple’s growing presence in India signifies a significant shift in the global smartphone manufacturing landscape. While challenges exist, it’s a move with long-term implications for both Apple and the Indian economy. This strategic shift could lead to a more robust manufacturing ecosystem in India, increased job creation, and potentially, a wider range of iPhones available to Indian consumers.
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