Apple assembled iPhones worth over $7 billion in India last fiscal. Broadly speaking, FY23 production is three times higher than a year ago. These numbers are important for India as the company tries to grow beyond China.
The California-based company now assembles seven per cent of its iPhones in India through partners such as Foxconn Technologies and Pegatron Corp. This is a significant leap forward for India and its ‘Make in India’ programme. The country had an estimated one percent of the world’s iPhone users in 2021.
Apple is trying to reduce its dependence on China in view of the increasing tension between Washington and Beijing. For example, chaos last year at Foxconn’s main “iPhone City” campus in Zhengzhou caused disruptions to Apple’s supply chain and forced the company to cut production estimates. It is clear, Apple does not want a repeat of such disruption due to any geopolitical activities.
According to a Bloomberg report, in FY23, Apple exported ‘Made in India’ iPhones worth five billion dollars. This is four times as compared to FY22. Apart from this, Apple is trying to assemble its next generation iPhone simultaneously in India and China. If all goes according to plan, this will be the first time that the assembly of the iPhone will start simultaneously in both the countries.
The report also said that the world’s most valuable company had been planning to diversify its supply chain for a long time. In various meetings, Apple executives asked the government for incentives in India and encouraged its partners Foxconn, Wistron and Pegatron to assemble locally.
Together, the company’s three partners employ around 60,000 workers in India and locally assemble models ranging from the iPhone 11 series to the latest iPhone 14 series. Through an aggressive expansion plan from its partners, Apple plans to assemble a quarter of its iPhones in India by 2025.
The increase in production of its iPhones in India establishes the country as a reliable manufacturing hub, which could have implications for other US brands planning to set up their manufacturing plants in India in the near future.
Furthermore, the report states that the company sees strong growth potential in India. Apple is planning to open two retail stores in India next week. One in Mumbai and the other in the capital Delhi. Apple CEO Tim Cook is expected to be present at the launch event, underscoring the importance of India to the company.
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