Apple Inc. has seen a significant boost in iPhone exports from India, which increased by one-third to nearly $6 billion in the six months ending September. This growth is part of Apple’s strategy to diversify production and reduce reliance on China. Key suppliers like Foxconn and Tata Electronics are pivotal in this expansion. iPhones now constitute a major export category to the U.S., valued at $2.88 billion. Analysts project India's sales could reach $33 billion by 2030, driven by a growing middle class.
Apple Inc. is making significant strides in its manufacturing operations in India, with iPhone exports soaring by one-third in the six months leading up to September. This impressive growth reflects the company's commitment to diversifying its production capabilities and reducing its reliance on China.
According to sources familiar with the matter, Apple exported nearly $6 billion worth of iPhones made in India, representing a remarkable increase from the previous year. If this trend continues, annual exports could exceed $10 billion for the fiscal year 2024.
The tech giant is rapidly expanding its manufacturing footprint in India, leveraging local incentives, a talented workforce, and advancements in the country’s technology sector. Three key suppliers—Foxconn Technology Group, Pegatron Corp., and Tata Electronics—are instrumental in this growth, assembling iPhones in southern India. Foxconn, located near Chennai, is the leading supplier and accounts for half of the country’s iPhone exports.
Tata Electronics, part of the Tata Group, has also made significant contributions, exporting approximately $1.7 billion in iPhones from its Karnataka facility from April to September. This milestone marks Tata's entry as the first Indian assembler of Apple’s iconic devices, following its acquisition of the unit from Wistron Corp. last year.
iPhones represent a substantial portion of India’s smartphone exports, making them a top export category to the U.S., valued at $2.88 billion during the first five months of this fiscal year. Just five years ago, smartphone exports to the U.S. were a mere $5.2 million before Apple ramped up its manufacturing efforts in India.
Despite these achievements, Apple holds just under 7% of India’s smartphone market, which is predominantly led by Chinese brands like Xiaomi, Oppo, and Vivo. Nevertheless, Apple is making ambitious moves in the country. The Indian government’s subsidies have enabled the assembly of its premium iPhone 16 Pro and Pro Max models locally, and Apple is also planning to open new retail locations in tech hubs like Bangalore and Pune.
CEO Tim Cook inaugurated Apple’s first retail stores in Mumbai and New Delhi last year, which, along with strategic online sales initiatives and a burgeoning middle-class population eager for Apple products, propelled the company’s India revenue to an all-time high of $8 billion in the year ending March.
Looking ahead, analysts from Bloomberg Intelligence estimate that Apple’s sales in India could reach $33 billion by 2030, driven by increasing purchasing power among the middle class and the growing popularity of payment plans.
Apple’s flourishing presence in India stands in contrast to its challenges in China, where economic conditions have faced headwinds following stringent COVID-19 lockdowns and a property market crisis. While Apple continues to depend heavily on China for much of its manufacturing and sales, its strategic investment in India is poised to play a critical role in the company’s future growth. In the fiscal year ending in March 2024, Apple assembled $14 billion worth of iPhones in India, doubling its production capabilities and furthering its goal to diversify beyond China.
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