1 in 7 iPhones is produced in India; Apple's India iPhone output rises to 14%: Report

Apple India production: Apple Inc. has assembled iPhones worth $14 billion in India during the fiscal year 2024, doubling its production and signaling an accelerated effort to diversify its manufacturing beyond China, according to a report by Bloomberg News.

The US tech giant now produces approximately 14 per cent of its flagship devices in India, equivalent to about one in seven iPhones, the report said, quoting sources familiar with the matter.

The significant increase in Indian production underscores Apple's proactive measures to reduce its heavy reliance on China amid escalating geopolitical tensions. While China remains Apple's largest iPhone manufacturing hub and a crucial market, the company is facing declining revenues in the region, impacted by intensified competition from rivals like Huawei Technologies Co. and growing restrictions on foreign technology usage.

The surge in Indian manufacturing represents a victory for Prime Minister Narendra Modi's administration, which has incentivised foreign companies, including Apple, with financial benefits to attract high-end manufacturing. The government asserts that the expansion in manufacturing has generated around 150,000 direct jobs at Apple's suppliers.

According to Bloomberg's report, Foxconn Technology Group assembled nearly 67 per cent of the India-made iPhones, while Pegatron Corp. accounted for about 17 per cent in the fiscal year ending March 2024. The remaining iPhones were manufactured at Wistron Corp.'s plant in Karnataka, which was taken over by the Tata Group last year. Tata Group intends to construct one of the country's largest iPhone assembly plants.

It's important to note that the $14 billion figure refers to the estimated value of the devices as they leave the factory, rather than their retail prices.

This development highlights Apple's strategic shift in diversifying its manufacturing base, leveraging India's growing prominence as a key production center in the global supply chain.