SUMMARY
Apple now produces almost 7% of its iPhones in India as against a mere 1% in 2021
Of the iPhones produced in India last fiscal year, $5 Bn worth of smartphones were exported: Report
India has emerged as a key market for the company; Apple to open its retail stores in Delhi and Mumbai next week
Highlighting Apple’s decisive manufacturing shift towards India, the production of iPhones by the tech giant’s contract manufacturers reportedly tripled to $7 Bn in the financial year 2022-23 (FY23).
The Cupertino-based company now produces almost 7% of its iPhones in India as against a mere 1% in 2021, Bloomberg reported.
Of the iPhones produced in India last fiscal year, $5 Bn worth of smartphones were exported, the report said citing sources.
The rising production in India is part of Apple’s plans to diversify its production from China. While the harsh Covid-19 restrictions in China derailed Apple’s supply chain, forcing the company to diversify its production base, the rising tensions between the US and China is also a major reason behind the shift.
Apple’s India Ambitions
Besides Apple’s desire to diversify its production base, the Indian government’s production linked incentives (PLI) scheme to promote domestic manufacturing of phones and other electronic products has helped the country emerge as the factory for the tech giant.
Apple supplier Foxconn plans to invest up to $1 Bn to set up a manufacturing facility on the outskirts of Bengaluru. Foxconn also has manufacturing facilities in Tamil Nadu and Andhra Pradesh.
Earlier this year, Apple’s vendor Jabil Inc began manufacturing AirPods components in India. Meanwhile, another vendor Salcomp has announced plans to double its workforce in India to 25,000 by 2026.
Amidst all this, India is also emerging as a key market for the US-based company. During its Q1 earning calls, Apple CEO Tim Cook said that the company reported double-digit growth during the quarter in India and he is ‘very bullish’ on the country.
Recently, Apple also undertook an international reshuffle of its top sales executives to make India a separate sales zone within Asia.
Next week, the company is opening its flagship retail stores in Delhi and Mumbai. It has also started offering UPI auto payment options for subscription-based purchases on its App Store in India.
