India’s iPhone production reaches $14 billion – a huge success for Apple’s India manufacturing plan?

Reports show that Apple has significantly increased iPhone production in India, which was worth an impressive $14 billion in the last fiscal year. This is a significant development in global manufacturing. The surge means a doubling of production capacity, accounting for about 14% of Apple’s total iPhone production. The move highlights Apple’s strategic efforts to diversify manufacturing outside of its traditional stronghold in China, a decision that could be influenced by ongoing geopolitical tensions.

Is Apple’s Make in India plan a huge success?

While most of India’s current production is focused on models from the iPhone 12 to the latest iPhone 15 (excluding the high-end Pro and Pro Max models), this is still a significant milestone for India’s aspirations as a manufacturing hub. The trend is in line with broader patterns observed across industries, with companies such as Tesla, Cisco and Google increasingly considering setting up hardware production facilities in India.

This shift is driven by a variety of factors, including the desire to mitigate geopolitical risks, increase resilience to supply chain disruptions, and address environmental, social and governance (ESG) issues. Analysts at Bloomberg Intelligence noted that changing business priorities require less reliance on China’s technology supply chain, despite inherent complexities and costs.

In addition to manufacturing, Apple recently opened its first two company-owned stores in India (New Delhi and Mumbai), signaling Apple’s long-term commitment to the Indian market. Plans to expand a further three stores by 2027 underline Apple’s strategic vision to expand its retail presence in the country.

Supported by government fiscal incentives, India has successfully attracted high-end manufacturing, resulting in huge economic benefits, including job creation. The Bloomberg report highlights that Foxconn Technology Group remains the main assembler in India, followed by Pegatron, while Wistron’s recent acquisition by Tata Group further strengthens India’s manufacturing capabilities.

Although China remains Apple’s largest manufacturing center and important market, challenges such as declining revenue and increasing competition pose strategic considerations. Chief Executive Tim Cook’s recent activities in China illustrate Apple’s nuanced approach to maintaining relationships while pursuing geographic diversification.

Overall, the increase in iPhone production in India highlights the country’s growing importance in the global manufacturing landscape and represents Apple’s strategic move toward a more diversified production base. This development has a positive impact on both the Indian economy and Apple’s global supply chain.