According to a report from Bloomberg released on Wednesday, Apple has significantly ramped up its iPhone production in India, reaching a staggering $14 billion worth of devices manufactured during the last fiscal year. This move underscores Apple’s ongoing efforts to diversify its manufacturing operations beyond China amidst strained US-China relations.
As tensions between the US and China persist, Apple has strategically expanded its production footprint to countries like Vietnam and India. This strategic shift marks a substantial departure for the tech giant, which has traditionally heavily relied on China for its manufacturing needs.
The report indicates that Apple now produces approximately 14% of its iPhones in India, doubling the volume compared to the previous year. Pegatron, one of Apple’s key manufacturing partners, assembled around 17% of these iPhones, while Foxconn accounted for approximately 67% of the production. The remaining portion was handled by Wistron.
In a significant meeting held in June 2023, Apple CEO Tim Cook and other tech leaders engaged with India’s Prime Minister Narendra Modi at the White House. Cook emphasized India’s immense potential, describing it as a “huge opportunity” during an interview with CNBC following the meeting. Notably, Apple expanded its retail presence in India by opening its first physical stores in the country last year.
Despite its growing emphasis on diversification, China remains a pivotal market for Apple. However, the company has encountered challenges in the region this year, with iPhone sales reportedly declining by 24% in the first six weeks of 2024, according to a Counterpoint Research report. Intense competition from domestic smartphone vendors like Huawei has posed significant hurdles for Apple’s market share in China.
Apple declined to provide a comment on the Bloomberg report.
