Updated Oct 31, 2024 14:18 IST
Apple is rapidly expanding its manufacturing footprint in India. (Image: Twitter/Ashwini Vaishnaw/Shutterstock/ET NOW News)
Article Highlights
- Apple is rapidly expanding its manufacturing footprint in India, using local subsidies, a skilled workforce, and the country’s technological advancements.
- Apple iPhones are now the largest part of India’s smartphone exports, making it the top export to the US at $2.88 billion in the first five months of this fiscal.
- Apple holds just under 7% of India’s smartphone market, which is dominated by Chinese brands like Xiaomi, Oppo, and Vivo.
US technology major, Apple has increased iPhone exports from India by a one-third increase in value from the previous year, as it looks to expand manufacturing in the country and reduce its China dependence. In the six months to September, it exported $6 billion (Approx Rs 50,000 crore) worth of India-made iPhones, which should take it to $10 billion in FY24, says a Bloomberg report.
Commenting on achievement MeitY minister, Ashwini Vaishnaw said “Apple exports Rs 50,000 Crore – ‘Made in India‘ iPhone. “33% surge from the first half of the last fiscal”, he posted on social media platform
Expanding the supply chain
Apple is rapidly expanding its manufacturing footprint in India, using local subsidies, a skilled workforce, and the country’s technological advancements. This is part of Apple’s broader plan to diversify its manufacturing base as US and China tensions rise.
Three key suppliers—Foxconn Technology Group of Taiwan, Pegatron Corp., and Tata Electronics of India—are driving this manufacturing growth. Foxconn’s Chennai unit is the largest supplier, accounting for half of India’s iPhone exports. Tata Electronics, which acquired a factory from Wistron Corp. last year, is the first Indian company to assemble Apple’s flagship product and has exported $1.7 billion worth of iPhones from its Karnataka facility in FY23.
Impact on India’s Export Economy
Apple iPhones are now the largest part of India’s smartphone exports, making it the top export to the US at $2.88 billion in the first five months of this fiscal. Five years ago, annual smartphone exports to the US were just $5.2 million.
Despite this growth, Apple holds just under 7% of India’s smartphone market, which is dominated by Chinese brands like Xiaomi, Oppo, and Vivo. However, Apple is making substantial investments to increase its market share, including assembling its high-end iPhone 16 Pro and Pro Max in India. The subsidies by Prime Minister Narendra Modi’s administration helped Apple assemble its pricey iPhone 16 Pro and Pro Max models.
Retail and Revenue Growth
Apple is also growing its retail footprint in India. After launching its first stores in Mumbai and New Delhi last year, it plans to open new stores in Bangalore and Pune. With a strong online presence and a growing middle class wanting to buy Apple products, Apple’s annual revenue in India reached a record $8 billion by March.
Future Prospects
Analysts from Bloomberg Intelligence predict that Apple’s sales in India could reach $33 billion by 2030, driven by rising middle-class purchasing power and increased use of payment plans. This optimistic outlook contrasts with Apple’s challenges in China, where economic slowdowns and a property crisis have impacted sales.
In the fiscal year through March 2024, Apple assembled $14 billion worth of iPhones in India, doubling its production and reinforcing its commitment to diversifying beyond China. Of this, approximately $10 billion worth of iPhones were exported, underscoring India’s growing importance in Apple’s global supply chain.
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