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iPhone production in India just passed the US$7 billion mark, expected to hit US$40 billion in five years

By Cookie Monster - on 26 Sep 2023, 9:22am

iPhone production in India just passed the US$7 billion mark, expected to hit US$40 billion in five years

The Apple iPhone 15 and iPhone 15 Plus are made in India.

Despite some purported hiccups earlier this year, Apple reportedly crossed the $7 billion production milestone in India for the latest fiscal year.

An unnamed Indian government official shared with BQ Prime that Apple aims to boost iPhone production in the country to over $40 billion in the next five years. However, the iPhone maker currently does not have plans to make iPads or MacBooks in India.

Two of the four iPhone 15 models, the iPhone 15 and iPhone 15 Plus, are being made in India. In addition, for the first time, these "made-in-India" iPhones are shipped on the same day that sales started in the first wave of countries on 22 September.

Reports of Apple shifting production from China to India and other countries in the region surfaced as early as 2019. Foxconn, one of the biggest iPhone suppliers, announced in April 2019 that it would begin manufacturing newer iPhone models in India.

In May 2020, the Economic Times reported that Apple planned to shift up to 20% of iPhone production from China to India as part of its plans to diversify the supply chain and minimise disruption to its production.

Reuters released a report in July 2020 that Foxconn invested $1 billion in India to make iPhones at the request of Apple as the iPhone maker struggled to manage supply chain disruptions caused by Covid-19 and trade tensions between the US and China. 

Even as the world moved on from the pandemic in 2022, Apple faced an uphill task to bring production levels back to normal as China enforced numerous lockdowns across the country. This led to Apple informing its contract manufacturers to expand production out of China to India and Southeast Asia.

Analysts began to share their estimates on the shift with some claiming a quarter of iPhone production to move to India by 2025. Towards the end of last year, Apple apparently recruited Pegatron as its second iPhone 14 supplier in India.

With political tensions between the US and China unlikely to resolve anytime soon, the shift to India will likely only accelerate over the next few years. 

Source: BQ Prime

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