A significant landmark has been achieved by Apple Inc. in India, as the company’s production value of iPhones reached an impressive $14 billion during the fiscal year 2024, according to a report released by Bloomberg News on Wednesday. In a meaningful shift in its manufacturing strategy, Apple now produces approximately 14% of its flagship devices in the country – meaning nearly one in seven iPhones globally come from Indian assembly lines. The statistics provided by sources with knowledge on the matter highlight a strategic pivot and scaling up of Apple’s operations in the region.
The production of iPhones in India is led primarily by Foxconn, which is responsible for about 67% of the devices assembled in the country. Pegatron Corp follows with a 17% share, while the Tata Group-operated Wistron Corp facility in Karnataka contributes to the remaining output. However, requests for Apple’s comments on these developments were not immediately answered.
Apple’s reliance on China for manufacturing has long been a topic of discussion, but in recent months there has been a clear and deliberate effort by the tech giant to diversify its supply chain. This move is largely influenced by the escalating geopolitical tensions between Beijing and Washington, which pose risks to the stability and predictability of Apple’s production capabilities in China. Despite these changes, China still holds the title as the world’s most substantial manufacturing hub for iPhones.
The shifting dynamics of global manufacturing are further exemplified by recent reports from Reuters, which indicate that Pegatron is in advanced negotiations to pass the reins of its only iPhone manufacturing facility in India to the Tata Group. Situated near Chennai in Tamil Nadu, the handover signifies deeper cooperation between the Indian conglomerate and the iPhone producer.
The Tata Group is not resting on its laurels, as it is also in the process of constructing another plant in Hosur, Tamil Nadu. Speculation suggests that Pegatron may play a key role in this venture, potentially entering as a joint venture partner in the operation of the new establishment.
Apple’s strategic maneuver to enhance its manufacturing footprint in India is multifaceted. This move not only mitigates risks associated with over-dependence on a single region but also taps into the vast potential of India’s growing economy and its skilled labor force. By localizing production, Apple can better cater to the booming Indian smartphone market, reduce logistics costs, and potentially gain favor with the Indian government, which has been promoting the “Make in India” initiative to boost the country’s manufacturing sector.
Apple’s investment in India is also timely, as the demand for sophisticated technology products in the country is on the rise. By producing iPhones locally, Apple can avoid high import taxes, thus making their products more competitively priced for the Indian consumer. Moreover, the favourable demographic dividend and the increasing digital connectivity in the region present Apple with an opportunity to secure a sizeable share of the Indian market for its products.
Reflecting on the broader landscape, Apple’s increased production in India is just one aspect of a larger trend where major technology firms are reassessing their supply chains. Global entities, especially those in the tech industry, are seeking more resilient and adaptable manufacturing ecosystems to prepare for potential disruptions and to take advantage of emerging markets.
As Apple’s venture in India develops further, eyes are set on the subcontinent as a pivotal arena for global tech manufacturing. The influx of iPhone production serves as a case study for the viability of diversifying assembly lines across multiple geopolitical areas. Given the pace of growth, it won’t be long before India’s role in the tech industry is not just as a consumer market but as a key supplier and manufacturer at the global stage, democratizing access to technology and fueling the country’s advancement in the digital age.
