Bengaluru: Apple Inc. significantly boosted its iPhone production in India to $14 billion during the last fiscal year, signaling an accelerated effort to diversify its manufacturing beyond China.
According to sources familiar with the matter, the US tech giant now manufactures approximately 14% of its flagship devices in India, representing about one in seven iPhones. This surge in production underscores Apple’s push to reduce its longstanding dependence on China, especially amidst escalating geopolitical tensions. While China remains Apple’s largest iPhone manufacturing hub and its biggest overseas market, the company has faced challenges there, including declining revenues and increased competition from rivals like Huawei Technologies Co.
The substantial increase in Indian manufacturing activity reflects a success for Prime Minister Narendra Modi’s administration, which has incentivized foreign firms like Apple to invest in high-end manufacturing in India. The government claims that this growth in manufacturing has led to the creation of 150,000 direct jobs at Apple’s suppliers.
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Foxconn Technology Group and Pegatron Corp. assembled nearly 67% and 17%, respectively, of the iPhones manufactured in India during the fiscal year ending in March 2024, according to insiders. The remaining iPhones were produced at Wistron Corp.’s facility in southern Karnataka state, which was taken over by the conglomerate Tata Group last year. Tata Group plans to establish one of the largest iPhone assembly plants in the country.
It’s important to note that the $14 billion figure refers to the estimated value of the devices as they leave the factory, rather than their retail prices. Representatives for Apple declined to provide any comments on the matter.
