Apple produced $14B worth of iPhones in India in FY23
What's the story
Apple has manufactured iPhones worth $14 billion in India during the last fiscal year, according to Bloomberg. The move is seen as an effort to reduce its dependence on Chinese production facilities. Approximately 14% of the iPhones produced by the company are now made in India, which is about one in seven made across the 2024 fiscal year. The models range from the iPhone 12 to the base iPhone 15, excluding 15 Pro and Pro Max models.
Mitigating dependence
Apple's strategic move amid rising geopolitical tensions
The shift toward increased production in India is part of Apple's strategy to mitigate its reliance on China amidst escalating geopolitical tensions. In 2022, the tech giant reportedly suffered a loss of about $1 billion per week due to a workers' uprising at its largest iPhone factory in China. Since then, Apple has been urging suppliers to switch to batteries made in India for its smartphones and relocate some production to the country.
Production partners
Major contributors to Apple's iPhone production in India
Foxconn Technology Group, a Taiwanese firm, assembled approximately 67% of the iPhones produced in India. This company also manufactures iPhones in China. Another Taiwanese firm, Pegatron, was responsible for producing nearly 16% of the iPhones in India. The remaining portion of iPhone production was handled by India's Tata Group after it acquired Wistron's factory in Karnataka last year.
Strategic meetings
Expansion plans and Cook's meeting with Indian PM
Apple CEO Tim Cook met with Indian Prime Minister Narendra Modi in June last year, along with other tech leaders. Following this meeting, Cook expressed his view of India as a "huge opportunity." In 2023, Apple inaugurated its first retail stores in Mumbai's Bandra Kurla Complex (Apple BKC) and New Delhi (Apple Saket) and has plans to open three more stores by 2027. Apple currently holds about 6% of India's smartphone market share.