In Short:
Apple sourced 14% of its iPhones from India in fiscal 2024. The company assembles iPhones in India, with Foxconn being the largest supplier at 67%. India and Vietnam will produce more iPhones in the future. Tata Group is eyeing to assemble iPhones in India and is in talks with Pegatron. Made-in-India iPhones are not cheaper due to imported components. Apple opened flagship stores in Mumbai and Delhi, showing the importance of the Indian market.
Apple Sources 14% of iPhones from India in Fiscal 2024
Apple has sourced 14% of its iPhones from India in fiscal 2024, indicating that approximately 1 out of every 7 iPhones was made in India. While Apple assembles the iPhones in India, the component manufacturing still happens elsewhere. According to Bloomberg, the value of iPhones assembled in India in fiscal 2024 reached $14 billion.
Key Suppliers of Made in India iPhones
Foxconn, the largest supplier, contributes around 67% of the overall output of iPhones from India, followed by Pegatron Corporation at 17%. Tata Group has also entered the scene by taking over Wistron’s Plant in Karnataka last year, manufacturing the remaining iPhones.
Focus on Diversification and Expansion
Apple is shifting its production capacity from China to countries like India and Vietnam to diversify risk. Both India and Vietnam are expected to play a more significant role in iPhone production for Apple in the coming years. Tata Group is in discussions with Pegatron to potentially take over a plant near Chennai for iPhone assembly.
Production Incentives and Future Plans
With the Production Linked Incentive (PLI) scheme and cost-effective labor, tech giants like Apple are looking to increase their production value in India. Tata Group is setting its sights on assembling iPhones in India, with a new plant in Hosur, Tamil Nadu, in collaboration with Pegatron.
Expansion of Apple Retail Stores in India
Apple has already opened flagship stores in Mumbai and Delhi, with plans for more company-owned stores in cities like Bengaluru. Last year, Apple’s CEO Tim Cook attended the store openings, emphasizing the significance of the Indian market for the company.
Made-in-India iPhones do not necessarily translate to cheaper iPhones in India due to the sourcing of components from outside, which impacts the overall costs.
