In a significant move to reduce its manufacturing reliance on China, Apple Inc. has ramped up iPhone exports from India, reaching nearly $6 billion in the first half of the fiscal year, marking a one-third increase from the previous year.
Projections indicate that annual exports may exceed $10 billion by fiscal year-end, supported by Apple’s expanding production network in India, which benefits from local subsidies and a growing skilled workforce.
Three key Apple suppliers—Foxconn Technology Group, Pegatron Corp., and Tata Electronics—assemble iPhones in southern India. Foxconn, with a major plant near Chennai, leads India’s iPhone exports, while Tata Electronics has exported approximately $1.7 billion in iPhones from its Karnataka facility. Tata’s recent acquisition of Wistron’s Indian assembly unit makes it the first Indian firm to assemble iPhones, a notable development for the local electronics industry.
iPhones make up a major portion of India’s smartphone exports, helping the country’s shipments to the U.S. reach $2.88 billion in the first five months of this fiscal year alone. This growth is remarkable considering India’s smartphone exports to the U.S. totaled only $5.2 million five years ago, before Apple’s production expansion in India.
While it currently holds a modest share of India’s smartphone market, which is led by brands like Xiaomi, Oppo, and Vivo, it’s making substantial investments to grow its presence. Recent subsidies enabled Apple to assemble its premium iPhone 16 Pro models in India.
The tech giant has also opened retail stores in Mumbai and Delhi, with plans for new outlets in Bangalore and Pune. This strategy, along with a growing middle class in India, propelled Apple’s India revenue to a record $8 billion last fiscal year.
Apple produced $14 billion worth of iPhones in India through March 2024, doubling its output and further diversifying away from China. Of this, roughly $10 billion was exported, reinforcing India’s importance in Apple’s global manufacturing strategy as the company adapts to shifting market dynamics in China.
