Apple's India Manufacturing Business Booms, iPhone Exports Set to Exceed $10 Billion

Apple's India Manufacturing Business Booms, iPhone Exports Set to Exceed $10 BillionApple's iPhone exports from India surged by a third year-on-year to nearly $6 billion in the April-September period, highlighting the company's growing local manufacturing operations. Sources reveal that Apple's global exports from India are expected to top $10 billion in the fiscal year 2024

Apple's India Manufacturing Business Booms, iPhone Exports Set to Exceed $10 Billion

Apple's iPhone exports from India surged by a third year-on-year to nearly $6 billion in the April-September period, highlighting the company's growing local manufacturing operations. Sources reveal that Apple's global exports from India are expected to top $10 billion in the fiscal year 2024.

Apple is rapidly expanding its Indian manufacturing network, leveraging government subsidies, skilled labor, and advancing technological capabilities. India has become an integral part of Apple's business, with three key suppliers - Foxconn, Pegatron, and India's own Tata Electronics - assembling iPhones in southern India.

Foxconn's Indian subsidiary, located near Chennai, is the largest local supplier, accounting for about half of India's iPhone exports. Tata Group, through its factory in Karnataka, exported iPhones worth about $1.7 billion in the April-September period. Tata Group acquired the facility from Wistron last year, becoming the first Indian assembler of Apple iPhones.

According to India's Ministry of Commerce, iPhones dominate the country's smartphone exports, propelling the category to become India's top export to the United States in the first five months of fiscal 2024, at $2.88 billion. Just five years ago, India's annual smartphone exports to the US were a mere $5.2 million.

Despite this growth, Apple's share in India's smartphone market remains below 7%, lagging behind Chinese brands like Xiaomi, Oppo, and Vivo. Although India's size in the global iPhone market is still small, Apple is making a big bet. Government subsidies have driven Apple to start assembling its premium iPhone 16 Pro and Pro Max models in India this year.

Apple also plans to open new retail stores in Bengaluru, a southern technology hub, and Pune, a western city. Last year, Apple opened its first retail stores in Mumbai, India's financial capital, and New Delhi, the capital, with CEO Tim Cook attending the launch events. Grand openings, marketing campaigns surrounding the new stores, and active online sales promotions have fueled Apple's record-breaking annual revenue in India. In the year ending March, a growing Indian middle class's desire for Apple products brought revenue to $8 billion.

"We estimate that Apple's sales in India could reach $33 billion by 2030, driven by rising purchasing power among the local middle class and more customers opting for installment plans," said Anurag Rana and Andrew Girard, analysts at Bloomberg Intelligence.

Currently, Apple relies heavily on China for its production and sales. India is unlikely to become its largest market in the near term. In the fiscal year ending March 2024, Apple assembled iPhones worth $14 billion in India, doubling production and accelerating the company's global diversification efforts. Of this, Apple exported iPhones worth roughly $10 billion from India.