New Delhi: Apple has reported a significant surge in iPhone exports from India, with a one-third increase in value during the six months leading up to September. The tech giant exported nearly $6 billion worth of iPhones manufactured in India, with annual exports projected to exceed $10 billion for the fiscal year 2024.
This growth underscores Apple’s strategic shift to enhance its manufacturing presence in India while reducing dependence on China, driven by rising geopolitical tensions between Beijing and Washington. The company is capitalizing on government incentives, a skilled workforce, and advancements in local technology.
Key suppliers, including Foxconn Technology Group, Pegatron Corp., and Tata Electronics, are assembling iPhones in southern India. Foxconn’s unit in Chennai leads production, accounting for half of the country’s iPhone exports. Tata Electronics, which took over a factory from Wistron Corp. last year, became the first Indian assembler of iPhones, exporting approximately $1.7 billion from its Karnataka facility between April and September.
The reported $6 billion export figure reflects the factory gate value of the devices, not their retail prices. While Apple representatives declined to comment, sources indicate that iPhone exports are becoming a significant contributor to India’s overall smartphone export category, which has reached a value of $2.88 billion to the US in the first five months of the current fiscal year. This marks a substantial increase from just $5.2 million five years ago.
Despite this growth, Apple holds less than 7 percent of India’s smartphone market, dominated by Chinese brands such as Xiaomi, Oppo, and Vivo. However, the company is making considerable investments in the Indian market, supported by government subsidies that have enabled local assembly of high-end models like the iPhone 16 Pro and Pro Max.
Additionally, Apple is planning new retail stores in cities like Bangalore and Pune, building on the success of its flagship stores opened by CEO Tim Cook in Mumbai and New Delhi last year, which contributed to a record $8 billion revenue in India for the year ending in March.
While Apple’s expansion in India contrasts with challenges faced in China, where economic struggles and a property crisis persist, India’s growing role is crucial to Apple’s diversification strategy. In the fiscal year ending March 2024, Apple manufactured $14 billion worth of iPhones in India, doubling its output, with approximately $10 billion of those devices earmarked for export.
