Apple doubled its iPhone assembly in India to $14 billion last fiscal year, indicating a move to diversify beyond China, according to a report by Bloomberg. Reports suggest that around 14 per cent of Apple's flagship devices are now made in India. This increase is seen as an attempt by the tech giant to reduce its reliance on China amidst growing geopolitical tensions.
Despite this, China remains Apple's largest iPhone production hub and biggest overseas market. However, Apple's revenues in China are reportedly declining due to rising competition from rivals like Huawei Technologies Co. and an increasing ban on foreign technology use in workplaces.
This surge in Indian manufacturing is a victory for the administration of Prime Minister Narendra Modi, who has offered financial incentives to foreign companies, including Apple, to attract high-end manufacturing. According to the government, this has resulted in the creation of 150,000 direct jobs at Apple's suppliers. Foxconn Technology Group and Pegatron Corp. assembled nearly 67 per cent and 17 per cent of the India-made iPhones respectively in the fiscal year ending March 2024.
The rest were made in Wistron Corp.'s plant in Karnataka, which was taken over by Tata Group last year. Tata plans to establish one of the largest iPhone assembly plants in the country. The $14 billion figure refers to the estimated value of the devices as they leave the factory, not their retail price. Apple representatives declined to comment.