In a strategic shift away from China, Apple Inc. increased its iPhone exports from India by a third in the six months through September, achieving close to $6 billion in India-made iPhone exports. The annual export figure is expected to surpass $10 billion for fiscal 2024, according to sources.
Manufacturing Expansion Fueled by Local Partnerships
Three major suppliers – Foxconn Technology Group, Pegatron Corp., and Tata Electronics – play crucial roles in Apple’s growing Indian manufacturing network. Foxconn’s facility near Chennai contributes half of the country’s iPhone exports. Tata Electronics, which took over a factory from Wistron Corp. last year, exported $1.7 billion worth of iPhones from Karnataka.
Apple’s expansion is supported by government subsidies and increasing consumer demand. India’s iPhone production includes high-end models like the iPhone 16 Pro and Pro Max, marking a notable move in Apple’s product line assembly within the country. Meanwhile, iPhone exports have made smartphones India’s top export to the U.S., valued at $2.88 billion in the fiscal year’s first five months.
New Retail Presence and Market Growth
Following the launch of Apple’s flagship stores in Mumbai and New Delhi last year, the company plans additional stores in Bangalore and Pune, aiming to tap into the nation’s expanding middle class. As Apple captures just under 7% of the Indian smartphone market, analysts project India sales could reach $33 billion by 2030.
Although China remains Apple’s dominant manufacturing base, India produced $14 billion worth of iPhones in the fiscal year ending March 2024, with roughly $10 billion exported. Apple’s continued growth in India highlights the company’s focus on diversifying its production and meeting rising demand.