Benzinga - by Shomik Sen Bhattacharjee, Benzinga Staff Writer.
This story was first published on the Benzinga India portal.
In response to mounting geopolitical tensions, Apple Inc. (NASDAQ: AAPL) has boosted its iPhone production in India, reaching an impressive $14 billion in the last fiscal year. This surge signifies a doubling of the tech giant's output, underscoring a strategic move to lessen its reliance on China.
Apple's production escalation implies that now, nearly 14% of the company's flagship phones, or approximately one in seven, originate from India. This information is according to undisclosed sources close to the situation as reported by Bloomberg.
While China continues to be a vital player as Apple's foremost production site and largest international market, there are increasing challenges. These include stiff competition from Huawei and constraints on foreign technology, both of which have impacted Apple's revenue within China.
This boost in Indian manufacturing represents a significant victory for Prime Minister Narendra Modi's administration. The government has been actively courting international companies like Apple, offering financial incentives to lure high-end manufacturing to India. As a result, an estimated 150,000 direct jobs have been created at Apple's supplier facilities.
Leading the pack in India are Foxconn and Pegatron, responsible for assembling approximately 67% and 17% of India-produced iPhones, respectively, for the fiscal year ending March 2024.
The remainder of the production is managed by Wistron’s facility in Karnataka, now under the supervision of Tata Group. This facility is on course to establish one of India’s largest iPhone assembly operations. It's crucial to note that the $14 billion figure represents the factory value of these iPhones and not their retail prices.
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