Apple made a significant move by shifting a substantial part of its iPhone production from China to India. Reports from Bloomberg indicate that over the last fiscal year, Apple manufactured iPhones worth $14 billion in India. This strategic decision reflects Apple’s initiative to diversify its manufacturing locations beyond its traditional stronghold in China, especially amidst strained U.S.-China relations.
Recognizing the need to safeguard its supply chain and lessen its reliance on Chinese manufacturing, Apple has been expanding its production footprint to countries like Vietnam and India. Currently, Apple is producing around 1 in 7 iPhones, which accounts for 14% of its total production, in India. This marks a significant increase from the previous year, highlighting the company’s commitment to establishing a more global manufacturing presence.
The production in India is divided among different manufacturers, with Pegatron handling about 17% of the iPhones, Foxconn producing approximately 67%, and the remaining portion being built by Wistron. This distribution showcases a collaborative effort among various manufacturers to meet Apple’s production demands and enhance the efficiency of its supply chain.
During a meeting in June 2023 with India’s Prime Minister Narendra Modi at the White House, Apple CEO Tim Cook expressed optimism about India’s potential as a crucial market for the company. Cook emphasized that India represents a significant opportunity for Apple, which is evident from the company’s decision to open its first retail stores in the country the previous year.
While China remains a vital market for Apple, recent challenges have been observed in terms of sales performance. A report by Counterpoint Research in March highlighted a 24% decline in iPhone sales in China during the initial six weeks of 2024. Apple is facing tough competition from local smartphone vendors like Huawei, indicating a competitive landscape that Apple is navigating.
Despite these developments, Apple has not provided any official comments regarding its production shift and performance in different markets. The company’s strategic moves to diversify manufacturing locations demonstrate a proactive approach in mitigating risks and seizing growth opportunities in various global markets.
