Home » PM Modi’s triumph as Apple boosts India output to $14 billion

PM Modi’s triumph as Apple boosts India output to $14 billion

by Admin

Tech giant Apple has reportedly doubled its iPhone production in India, reaching a staggering $14 billion in output for the last fiscal year. This move accelerates efforts to diversify manufacturing beyond China, amid geopolitical tensions and growth prospects within India’s manufacturing sector.

PM Modi's triumph as Apple boosts India output to $14 billion

According to sources familiar with the matter as reported by Bloomberg, Apple now manufactures approximately 14% of its marquee devices, or one in seven iPhones, in India. The company’s production in the country encompasses models ranging from the legacy iPhone 12 to the latest iPhone 15, excluding the higher-spec Pro and Pro Max variants.

Most of the devices assembled in India are exported, contributing to Apple’s presence in a smartphone market where cheaper Chinese brands currently dominate. This surge in production indicates Apple’s intensified drive to reduce its longstanding dependence on China, particularly as geopolitical tensions escalate.

Furthermore, Apple’s strategic shift away from China aligns with broader industry trends, as global tech companies reevaluate their supply chain strategies amidst evolving geopolitical risks and environmental, social, and governance (ESG) considerations. Analysts suggest that diversifying away from China’s tech supply chain, though complex and costly, has become imperative given China’s waning appeal as a manufacturing destination.

This move also underscores India’s emergence as a preferred manufacturing hub for multinational corporations, with companies like Tesla, Cisco, and Google also expressing interest in hardware production within the country. The substantial increase in iPhone assembly in India represents a significant victory for Prime Minister Narendra Modi’s government, which has actively courted foreign investment, offering financial incentives to attract high-end manufacturing. As a result, Apple’s manufacturing growth in India has reportedly created 150,000 direct jobs at its suppliers.

PM Modi's victory as Apple boosts India output to $14 billion

Foxconn Technology Group and Pegatron Corp., major players in the electronics manufacturing industry, accounted for nearly 84% of India-made iPhones in the fiscal year ending March 2024. The remaining iPhones were produced at Wistron Corp.’s plant in southern Karnataka state, now under the management of Tata Group, which aims to establish one of the nation’s largest iPhone assembly facilities.

While China remains Apple’s primary iPhone largest overseas market, the company faces challenges in the region, including declining revenues and increased competition from domestic rivals like Huawei. Despite these challenges, Apple CEO Tim Cook continues to nurture relations with Chinese Communist Party leaders, recognizing the importance of geographic diversification for the company’s long-term growth.

As Apple accelerates its production in India and diversifies its manufacturing base, the global tech landscape is undergoing a profound transformation. This strategic shift not only impacts industry dynamics but also has far-reaching implications for geopolitical relations, as countries vie for influence in the rapidly evolving technology sector.

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