Apple’s bold decision to shift a part of its manufacturing process offshore from China continues to accelerate, making India one of the main sources of iPhones worldwide. According to the predictions, Apple’s investment in Iphone assembly units in India in the fiscal year ending March 2024 would be about 14 billion US dollars and this is on the basis of 100 percent increase in the previous year’s assembly capacity.
From April to September 2024, Apple generated a whopping 6 billion USD in net exports from India produced iPhones which is 33 % higher than the amount reported in the same timeframe in 2023.
With this type of growth, it is realistic to assume within the fiscal year of 2024, Apples’ iPhone exports will exceed 10 billion USD. The sharp increase in these figures speaks volumes of India becoming a place of global manufacturing while establishing the effectiveness of Apple’s supply chain management.
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Apple set its sights on India because of the subsidies offered by the government, skilled manpower, and expanding the technology space. As China and the US continue to grapple with each other on various fronts, India has suddenly emerged as the best alternative for Apple to put its production eggs into multiple baskets rather than one.
In the Indian iPhone supply chain, three significant players have emerged, namely, Foxconn Technology Group, Pegatron Corp and Tata Electronics. Of all iPhone exports, nearly half is from Foxconn’s plant located in proximity to the city of Chennai.
Additionally, the Tata Group has been quite dynamic, manufacturing over $1.7 billion worth of iPhones at its Karnataka facility in the past six months. This marks a significant milestone, as Tata has become the first Indian company to begin assembling Apple’s flagship products.
This growth in the volume of iPhones has been responsible for the radical changes in the smartphone export scenario of India. Presently, Indian smartphones exports are dominated by iPhones, which constitute the single largest chunk of phones exported to the USA.
This development, therefore, highlights the increasing role that India hopes to play as a global manufacturer and, the opportunities that still exist for other players in the technology sector.
With Apple actively seeking opportunities to expand its manufacturing activities in India, it is likely that India will be able to maintain this growth in the global smartphone supply chain. Such a realignment not only presents advantages to Apple but also helps in the upliftment of Indian economy and its technology. By diversifying its production base away from a single manufacturing center, Apple can lessen the adverse impact of supply chain disruptions and provide a more predictable and stronger production workflow. This step can also assist in generating employment, increasing exports and encouraging more foreign investments in India, therefore enhancing the country’s economic growth.
