Apple iPhone exports from India have increased by a third in the six months to September as the country emerges as a critical hub for the iPhone maker's manufacturing ambitions. This surge comes as the U.S. company aims to lessen its dependence on China.
Apple has exported nearly US$6 billion of India-made iPhones, marking an increase of a third in value terms from a year earlier, Bloomberg reported, citing a source familiar with the matter. Apple's iPhone exports from India are expected to exceed about $10 billion in fiscal year 2024.
Besides the tech boom, Apple seeks to tap into India's human capital – a highly qualified workforce – and government subsidies. India has emerged as a strategic and low-risk alternative for Apple amid growing tensions between Washington and Beijing, Bloomberg reported.
The Apple iPhone assembly unit relies on three main vendors, namely Tata Electronics of India, Foxconn Technology Group, and Pegatron of Taiwan. Foxconn, among them, is leading the pack, supplying half of India's total iPhone exports.
Meanwhile, Tata Electronics, a part of the multifaceted Tata Group, exported $1.7 billion worth of iPhones from its Karnataka plant between April and September. Notably, when Tata acquired this business from Wistron last year, it became the first Indian company to make Apple's well-known iPhone.
Trade tensions between the U.S. and China have peaked in recent years due to factors such as dwindling trade flows, intensifying chip wars, and geopolitical unpredictability. Moreover, the Biden administration's past year's "de-risking" approach has intensified the move away from Chinese suppliers.
Compared to just $5.2 million in yearly exports five years ago, before Apple's expansion of manufacturing activities in India, iPhone exports from India to the United States increased significantly to $2.88 billion in the first five months of the current fiscal year, reported The Economic Times.
Despite holding only 7% of the Indian smartphone market — far behind Chinese rivals like Xiaomi, Oppo, and Vivo — Apple is actively expanding its presence in the country.
Prime Minister Narendra Modi's subsidies created a favorable atmosphere for Apple to kick off the manufacture of its high-end iPhone 16 Pro and Pro Max models in India, which include titanium bodies and cutting-edge cameras.
