Apple’s iPhone exports from India jumped by a third in the six months to September, underscoring its drive to expand production in the country and reduce its dependence on China.
The US company exported nearly $6 billion (roughly Rs 50,451 crore) of iPhones made in India, up a third in value terms from a year earlier, sources familiar with the matter said, speaking on condition of anonymity because the information is confidential. . . This puts annual exports on track to cross about $10 billion (roughly Rs. 84,086 crore) in FY2024.
Apple is rapidly expanding its manufacturing network in India, leveraging local subsidies, skilled labor and advances in the country’s technological capabilities. India is an important part of the company’s efforts to reduce its reliance on China, where risks have risen with Beijing’s tensions with the US.
Three Apple suppliers — Taiwan’s Foxconn Technology Group and Pegatron, as well as domestic Tata Electronics — assemble iPhones in southern India. Foxconn’s local unit, located on the outskirts of Chennai, is the main supplier in India, accounting for half of the country’s iPhone exports.
The electronics arm of software conglomerate Tata Group exported about $1.7 billion (roughly Rs 14,294 crore) worth of iPhones from its plant in Karnataka between April and September, sources said. Last year, Tata acquired the device from Wistron Corp., becoming the first Indian manufacturer of Apple’s best-selling device.
The dollar figure refers to the estimated factory value of the devices, not the retail price. Apple representatives declined to comment. Pegatron also declined to comment, while representatives for Foxconn and Tata did not respond to requests for comment.
According to data from the federal commerce ministry, iPhones account for the bulk of India’s smartphone exports and have helped the product category become the top export to the US with $2.88 billion (roughly Rs 24,211 crore) in the first five months of this fiscal year. . Five years ago, before Apple expanded manufacturing in India, the country’s annual smartphone exports to the US were a paltry $5.2 million (roughly Rs. 43.7 crore).
Still, Apple accounts for just under 7 percent of India’s smartphone market, which is dominated by Chinese brands such as Xiaomi, Oppo and Vivo. And while the market for the iPhone is still small worldwide, Apple is betting big.
Subsidies from Prime Minister Narendra Modi’s administration helped Apple assemble its expensive iPhone 16 Pro and Pro Max models with better cameras and titanium bodies in India this year. It is also looking to open new retail stores, including in the southern tech hub of Bangalore and the western city of Pune.
Last year, Chief Executive Officer Tim Cook opened the first Apple stores in the financial center of Mumbai and the capital, New Delhi.
Grand openings, a marketing spree around new stores, a strong push for online sales and a rapidly growing middle class eager to own Apple products boosted India’s annual revenue to a record $8 billion (roughly Rs 67,250 crore) in the year to March.
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