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Report: iPhone Production in India Surpasses $14 Billion in Fiscal 2024

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In Short:

Apple has started producing iPhones in India, worth $14 billion. They now make 14% of their iPhones in India, with Foxconn and Pegatron also involved in the manufacturing process. The move is part of Apple’s strategy to diversify its supply chain away from China. Tata Group is set to take over control of Pegatron’s iPhone manufacturing facility in Tamil Nadu. The Indian government has reduced import duties on mobile phone parts, benefiting companies like Apple.

According to a report by Bloomberg News, Apple has manufactured iPhones worth $14 billion (approximately Rs. 1,16,442 crore) in India in fiscal 2024.

Manufacturing Percentage Breakdown

The report mentioned that Apple now produces about 14 percent of its flagship iPhones in India, which translates to approximately 1 in 7 devices being manufactured locally. This information was provided by individuals familiar with the situation.

Out of the India-made iPhones, Foxconn assembled nearly 67 percent, while Pegatron contributed around 17 percent. The remaining iPhones were assembled at Wistron Corp‘s plant in Karnataka, which was taken over by the Tata Group last year.

Supply Chain Diversification

Amidst geopolitical tensions between Beijing and Washington, Apple is increasingly diversifying its supply chain beyond China. Despite China remaining the largest iPhone manufacturing hub globally, Apple is exploring production alternatives.

Joint Venture with Tata Group

As per a report by Reuters, there are advanced talks for Pegatron to transfer control of its iPhone manufacturing facility near Chennai to the Tata Group. This deal, supported by Apple, involves Tata holding a minimum of 65 percent stake in a joint venture with Pegatron.

Tata is also planning to establish another manufacturing plant in Hosur, Tamil Nadu, with Pegatron expected to be its partner in the joint venture.

How Has Apple’s iPhone Production in India Contributed to its Market Performance?

According to the IDC report, Samsung surpasses Apple in smartphone production. However, Apple’s iPhone production in India has contributed to its market performance. By manufacturing phones locally, Apple has been able to reduce costs and gain a larger market share in India, boosting its overall performance.

Indian Government’s Import Duty Cuts

In a move beneficial to companies like Apple and Xiaomi, the Indian government reduced the import duty on certain mobile phone parts from 15 percent to 10 percent in January. This decision aimed to support local manufacturing and boost the ‘Make in India’ initiative.

© Thomson Reuters 2024

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