Apple's iPhone production in India has surged, reaching a staggering $14 billion in fiscal year 2024, according to a Bloomberg News report citing sources familiar with the matter. This significant increase signifies India's growing importance in Apple's global manufacturing network.
The report estimates that roughly 14% of Apple's iPhones, or roughly one in seven devices, are now assembled in India. This marks a substantial jump from previous years, indicating a strategic shift by Apple to diversify its production base.
The rise of Indian iPhone manufacturing is attributed to several factors. The Indian government's efforts to attract foreign investment through initiatives like the Production Linked Incentive (PLI) scheme have played a crucial role. This scheme offers financial incentives to companies that establish or expand their manufacturing facilities in India.
Additionally, the growing domestic demand for iPhones in India has incentivized Apple to produce locally. By assembling iPhones within the country, Apple can potentially reduce import duties and offer more competitive pricing to Indian consumers.
Furthermore, India's large and skilled workforce presents a significant advantage for Apple. The country boasts a growing pool of engineers and technicians capable of supporting complex manufacturing processes. This readily available talent pool allows Apple to scale up production efficiently.
The two major Taiwanese contract manufacturers, Foxconn and Pegatron, have been instrumental in propelling India's iPhone production growth. According to the report, Foxconn assembled nearly 67% of the iPhones manufactured in India during fiscal year 2024, while Pegatron contributed approximately 17%.
Apple's growing presence in India's manufacturing sector is expected to have a positive ripple effect on the local economy. The creation of new jobs in manufacturing and allied sectors, coupled with the transfer of technological expertise, will likely contribute to India's industrial development.
While Apple has not officially commented on the specifics of the report, the significant increase in iPhone production in India suggests a long-term commitment from the tech giant to the Indian market. This strategic move positions India as a vital cog in Apple's global supply chain, potentially shaping the future of iPhone manufacturing.