Apple Triples India’s iPhone Production to $7 Billion in China Shift

Apple Inc. produced more than $7 billion worth of iPhones in India in fiscal year 2013. This is after increasing production beyond China.

People familiar with the matter stated that almost 7% of iPhones manufactured by the US company are now made in India thanks to expanding partnerships from Foxconn Technology Group and Pegatron Corporation. This is a big leap for India which was responsible for almost 7% of all iPhones sold worldwide in 2021.As tensions between Washington, Beijing and China continue to escalate, Apple is exploring ways to decrease its dependence on China. The company’s long-standing partners, who produce most iPhones in the world from sprawling Chinese factories, have increased production lines at an alarming rate over the past year, according to people, declining to name because the information is not public.

Last year, the world’s largest company was plagued by chaos at Foxconn’s main “iPhone City” complex in Zhengzhou. This caused vulnerabilities in Apple’s supply chain and forced it into a reduction in its output estimates. Indian Prime Minister NarendraModi also offered a series of incentives to encourage local manufacturing.

According to people, Apple exported $5Billion of iPhones in the 12 months ended March 2023. This is nearly four times the amount produced during the previous period. Apple is likely to make the next iPhones simultaneously in India and China sometime in the fall 2023. This will mark the first time iPhone assembly has been started simultaneously in these two countries. Apple could also assemble a quarter in India by 2025 if its suppliers continue to expand. The representatives of the US company declined comment.Apple recognized the necessity to diversify its supply chains even before the iPhone city crisis. Apple successfully lobbyed for Indian incentives and forced suppliers Wistron Corp., Pegatron and Foxconn to increase their local production. These three companies together employ approximately 60,000 people in India to make models that range from the older iPhone 11 to the most recent iPhone 14.

This has helped Apple to be at the heartof India’s plans to become a major manufacturing center and alternative to China. Apple is a world leader in manufacturing. Its production chain includes hundreds of companies around the globe and employs many millions.

India’s success in importing iPhone production could have implications on how other US brands think about their futures. Apple sees India as a source of future growth at a time when the Chinese economy is struggling after years of Covid Zero sanctions.

Next week, Apple India will open two retail outlets. One in Mumbai’s financial district and one in New Delhi. The Chief Executive Tim Cook will fly in to inaugurate the stores. This is a sign of India’s growing importance.Cupertino, California-headquartered Apple has also sought changes in India’s labor laws as part of its effort to expand local production and create mega factories.

Foxconn, the country’s largest contract manufacturer is planning to spend approximately $700 million to build a plant in a Southern state to produce phone components and possible iPhones. Representatives from Foxconn, Wistron, and Pegatron didn’t respond immediately to inquiries for comment.