Tim Hardwick
Apple now produces up to 14% of its iPhones in India, indicating the company's active efforts to diversify outside of China (according to Bloomberg).
That figure represents $14 billion in iPhone sales in the country, or about one in seven of the company's flagship devices, doubling production from the last fiscal year. year. Models assembled in India range from the iPhone 12 to the latest iPhone 15, excluding the premium Pro and Pro Max models.
Apple has been setting up iPhone manufacturing centers in India since Prime Minister Narendra Modi has begun promoting its “Make in India” initiative, which requires 30% of products sold by foreign companies to be produced or produced domestically.
The Indian government says the manufacturing surge has created 150,000 direct jobs Apple suppliers. That's a boon for the Modi administration, which has lured foreign companies like Apple with financial incentives to realize its ambitions of turning the country into a global manufacturing hub.
Foxconn has collected nearly 67% and Pegatron about 17% of iPhones. in India in the fiscal year ending March 2024, according to Bloomberg sources. The rest of the devices were made by Wistron.
While China remains Apple's largest iPhone assembly base and largest overseas market, it is where Apple's revenues are falling sharply due to the explosion of local suppliers such as Huawei and a government ban on iPhone use in government jobs.
Apple's diversification outside of China hints at the company's growing awareness of rising geopolitical tensions and the need to ensure supply chain resilience in the face of potential disruptions. The pivot to India also likely takes into account its fast-growing smartphone market – Apple also opened its first two stores there last year, in Mumbai and the capital New Delhi.
Tags: Bloomberg, China, India[ 63 comments ]
