Apple Now Assembles 14% of iPhones in India
Apple now produces as much as 14% of its iPhones in India, indicating the company's accelerating efforts to diversify beyond China (via Bloomberg).
The figure accounts for $14 billion of assembled iPhones in the country, or about 1 in 7 of the company's flagship devices, a doubling of production compared to the last fiscal year. Models assembled in India include the iPhone 12 through to the latest iPhone 15, excluding premium Pro and Pro Max models.
Apple has been setting up iPhone manufacturing hubs in India ever since Prime Minister Narendra Modi began promoting his "Made in India" initiative, which requires that 30% of products sold by foreign companies be manufactured or produced within the country.
The Indian government says the growth in manufacturing has created 150,000 direct jobs at Apple's suppliers. That's a boon for Modi's administration, which has enticed foreign companies like Apple with financial incentives to realize its ambition for the country to become a global manufacturing hub.
Foxconn assembled nearly 67% and Pegatron around 17% of iPhones in India in the fiscal year ending March 2024, according to Bloomberg's sources. The remaining devices were produced by Wistron.
While China remains Apple's largest iPhone assembly base and biggest overseas market, it is also where Apple's revenues have been plummeting, due to the meteoric rise of local vendors such as Huawei and a government ban on the use of iPhones in state workplaces.
Apple's diversification away from China hints at the company's growing awareness of rising geopolitical tensions and the need for supply chain resilience in the face of potential disruption. The pivot to India also likely takes into account its fast-growing smartphone market – last year Apple also opened its first two stores there, in Mumbai and the capital New Delhi.
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