Apple has significantly expanded its iPhone production in India, marking a strategic shift to diversify its manufacturing base beyond China. This move aligns with the company’s broader efforts to mitigate geopolitical risks and strengthen its global supply chain resilience.
As of fiscal year 2024, Apple assembled approximately 14% of its iPhones in India, a substantial increase from previous years. This production surge is valued at around $14 billion, with exports accounting for nearly $7 billion, setting a company record in the country. The Indian government’s Production-Linked Incentive (PLI) scheme has played a pivotal role in attracting Apple’s manufacturing operations, offering financial incentives to boost local production and exports.
Despite the impressive growth in manufacturing, Apple’s revenue from the Indian market remains modest compared to China. In FY24, Apple earned $8 billion in India, representing just over 2% of its global revenue of $391 billion. In contrast, Greater China generated $66.95 billion, accounting for more than 17% of Apple’s global revenue. This disparity is primarily due to India’s lower per capita income and the dominance of Android devices in the local market.
Looking ahead, Apple aims to further increase its production in India, with projections suggesting that the country could account for 25% of global iPhone shipments by 2025. This expansion includes plans to manufacture the latest iPhone models, such as the iPhone 16 Pro and Pro Max, in India shortly after their global launch. Additionally, Apple is working closely with major suppliers like Foxconn, Pegatron, and Wistron to scale up production capacities in the country.
While challenges remain, including the need for skilled labor and infrastructure development, Apple’s investment in India signifies a long-term commitment to establishing the country as a key manufacturing hub. This strategic shift not only enhances Apple’s supply chain diversification but also contributes to India’s growing prominence in the global electronics industry.
