Apple Inc.’s iPhone exports. from India rose by a third in the six months to September, underscoring efforts to expand production in the country and reduce dependence on China.
The U.S. company exported nearly $6 billion in Indian-made iPhones, up a third in value from a year earlier, people familiar with the matter said. This person said and asked not to be named because this information is private. That puts annual exports on track to exceed fiscal 2024’s roughly $10 billion mark.
Apple is expanding its manufacturing network in India at a rapid pace, taking advantage of local subsidies, a skilled workforce and advances in the country’s technological capabilities. India is a key part of the company’s efforts to reduce its dependence on China, where risks have increased with Beijing’s tensions with the United States.
Three of Apple’s suppliers – Foxconn Technology Group and Pegatron Corp. of Taiwan, and Tata Electronics – assembles iPhones in southern India. Foxconn’s local unit, based on the outskirts of Chennai, is the top supplier in India and accounts for half of the country’s iPhone exports.
The people said that the electronics manufacturing division of salt-to-software conglomerate Tata Group exported about $1.7 billion in iPhones from its factory in Karnataka state from April to September. Tata bought back the order. This position is from Wistron Corp. last year, becoming the first Indian assembler of Apple’s best-selling product.
The dollar figure refers to the estimated factory value of the device, not the retail price. Apple representatives declined to comment. Pegatron also declined to comment, while spokespeople for Foxconn and Tata did not respond to requests for comment.
According to federal Commerce Department data, iPhones account for the majority of India’s smartphone exports and helped the product category become the top export to the US with a value of $2.88 billion in 5 years. first month of this fiscal year. Five years ago, before Apple expanded production in India, the country’s annual smartphone exports to the US were only $5.2 million.
However, Apple accounts for less than 7% of the Indian smartphone market, which is dominated by Chinese brands such as Xiaomi, Oppo and Vivo. And while it’s still a small market for the iPhone globally, Apple is betting big.
Subsidies from Prime Minister Narendra Modi’s government helped Apple assemble the pricey iPhone 16 Pro and Pro Max models with better cameras and titanium bodies in India this year. It is also looking to open new retail stores, including in the southern tech hub of Bangalore and the western city of Pune.
Last year, CEO Tim Cook opened Apple’s first stores in the financial center of Mumbai and the capital New Delhi.
Grand openings, marketing blitz around new stores, a strong push for online sales, and a rapidly growing middle class eager to own the products Apple Inc. boosted its annual India revenue to a record $8 billion in the year to March.
What Bloomberg Intelligence says
India’s sales could reach $33 billion by 2030, we calculate, largely driven by growing middle-class purchasing power and greater use of payment plans.
Apple’s rising star in India contrasts with its waning fortunes in China, where the economy is struggling after harsh Covid-19 lockdowns and a property crisis. To be sure, Apple depends on China for much of its production and sales, and India is unlikely to become Apple’s top market anytime soon.
Apple assembled $14 billion of iPhones in India in the fiscal year to March 2024, doubling production and accelerating efforts to diversify beyond China. Of this, the country exported about $10 billion worth of iPhones.
