With the recent addition of manufacturing units in India, now Apple produces as much as 14% of its iPhones in the country.
14% Of iPhones Assembled In India
Interestingly, the figures also indicate the company’s accelerating efforts to diversify beyond China.
If we look closely, these figures almost account for $14 billion of assembled iPhones in the country.
We can also say that this accounts for about 1 in 7 of the company’s flagship devices hence indicating a doubling of production as compared to the last fiscal year.
In the meantime, except for premium Pro and Pro Max models, now iPhone 12 through to the latest iPhone 15, all models are now assembled in India.
Made in India Creating A Boon
Apple seems to have been setting up iPhone manufacturing hubs in India ever since Prime Minister Narendra Modi began promoting his “Made in India” initiative.
Under this initiative, there is a requirement that 30% of products sold by foreign companies need to be manufactured or produced within the country.
Besides this, this initiative has shown tremendous growth as this growth in manufacturing has created 150,000 direct jobs at Apple’s suppliers according to the Indian government.
It won’t be an exaggeration to say that this initiative has turned out to be a boon for Modi’s administration as it has enticed foreign companies like Apple with financial incentives to realize its ambition for the country to become a global manufacturing hub.
During the fiscal year ending March 2024, Foxconn assembled nearly 67% and Pegatron around 17% of iPhones in India, as per the information provided by Bloomberg’s sources.
It is noteworthy here that the remaining devices were produced by Wistron.
In the meantime, China still remains to be Apple’s largest iPhone assembly base and biggest overseas market.
This is also where Apple’s revenues have been plummeting.
This is due to the meteoric rise of local vendors such as Huawei and a government ban on the use of iPhones in state workplaces.
The latest move of diversification away from China hints at the company’s growing awareness of rising geopolitical tensions.
It also represents the need for supply chain resilience in the face of potential disruption.
We can not deny the pivot to India which takes into account its fast-growing smartphone market as last year Apple also opened its first two stores there, in Mumbai and the capital New Delhi.
