According to a report, Apple Inc.’s exports from India increased significantly by 33% in six months, including September. The tech giant exported approximately $6 billion worth of iPhones manufactured in India, which led to an increase of a third in value compared to the previous year.
The Bloomberg report stated that In the fiscal year ending in March 2024, Apple produced 14 billion dollars worth of iPhones in India. Now, the company has seen its production double in this country to increase growth beyond China. Almost $10 billion worth of those iPhones were shipped out, said people familiar with the matter.
There are multiple reasons attributing to India becoming a pronounced player in the production market. A few of them are the availability of a workforce which is skilled, accessibility to local subsidies, and developments in the country’s technological ability. India’s Prime Minister Narendra Modi’s provision of subsidies to the tech company aided their production of high-end iPhone 16 Pro and Pro Max models this year.
This increase in export quantity from India is said to help the company reduce its dependency on China due to the increased tensions between Beijing and the US. iPhones are taking a major share in smartphone exports from India as they have become the dominant category of exports to America It has reached $2.88 billion in just the first five months of the fiscal year, showed a federal trade ministry source. Five years before the expansion of Apple at a large scale in the subcontinent, smartphone export figures from India to the US marked only $5.2 million annually the report said.
In Southern India, Tata Electronics, Taiwan's Foxconn Technology Group, and Pegatron Corp. build the iPhones. Taiwan's Foxconn Technology Group is situated on the outskirts of Chennai. This company is the leading supplier of iPhones in India and is responsible for 50% of the country's iPhone exports. Tata Group exported $1.7 billion in iPhones from April to September.
Apple products in the Indian market constitute only 7%. Its competitors, China-based companies like Oppo, Vivo, and Xiaomi pertain as India’s preferred choice.
Bloomberg states that ”India sales could reach $33 billion by 2030, we calculate, fueled primarily by rising middle-class purchasing power and a greater use of payment plans.” $8 billion in revenue in India for Apple was recorded in the year through March owing to new store launches, intense marketing, online sales, and a growing middle class aspiring to own Apple products.