Apple manufactured $14 bn worth of iPhones in India in fiscal 2024, 1 in every 7 made in India

Apple reportedly manufactured iPhones worth $14 billion in India. This signifies a significant uptick, with Apple now producing approximately 14 per cent of its flagship devices in the country,

About 1 in 7 iPhones are now made in India according to a report in Bloomberg which cited sources familiar with the matter.

Foxconn took the lead in assembling nearly 67 per cent of the iPhones made in India, followed by Pegatron Corp at about 17 per cent. The remaining portion was manufactured at Wistron Corp’s facility in the southern state of Karnataka, which was acquired by the Tata Group last year.

This move by Apple to ramp up production in India aligns with its strategy to diversify its supply chain beyond China, particularly amidst escalating geopolitical tensions.

While China remains the primary manufacturing hub for iPhones globally, Apple’s efforts to bolster its presence in India reflect a broader trend of decentralization in the tech industry.

In related developments, Pegatron is reportedly in advanced discussions to transfer control of its iPhone manufacturing facility in Tamil Nadu to the Tata Group, as reported by Reuters. Additionally, the Tata Group is investing in a new plant in Hosur, Tamil Nadu, with Pegatron expected to become its joint venture partner.

Furthermore, Apple is planning to shift at least half of its existing supply chain from China to India over the next three years, a move that is anticipated to significantly increase job opportunities in the country.

According to a report by the Economic Times, Apple aims to directly employ at least 500,000 people in India’s ecosystem of component makers and suppliers, indicating a substantial expansion from current levels.

Key suppliers in India, including Tata Electronics, Salcomp Technologies, Foxlink, and Sunwoda, have emerged as major contributors to job creation, with estimates suggesting the creation of approximately 150,000 direct jobs and an additional 300,000 indirect jobs since the introduction of the production-linked incentive (PLI) scheme in August 2021.

Overall, the growth of Apple’s manufacturing footprint in India, coupled with its plans for supply chain diversification, underscores the country’s increasing importance as a strategic market and production hub for the tech giant.

(With inputs from agencies)