India Now Assembles 14% of Global iPhones, Cementing Its Role as Apple’s New Manufacturing Hub
Apple Inc. has significantly increased its manufacturing footprint in India, assembling iPhones worth 14 billion USD in the fiscal year 2024. This accounts for roughly 14% of its global iPhone output, a sharp rise from 6% just a year ago. The surge reflects Apple’s strategic move to diversify its supply chain and reduce its dependence on China.
Amid mounting geopolitical tensions, pandemic-era disruptions, and rising labor costs in China, India is fast becoming a key player in Apple’s global manufacturing ecosystem.
Foxconn, Tata, and Pegatron Lead Indian Expansion
Apple’s expanded Indian operations are powered by its three primary manufacturing partners:
- Foxconn has led the production drive, contributing nearly 67% of India-assembled iPhones.
- Pegatron Corp produced around 17% of the total.
- Tata Group, after acquiring Wistron’s plant in Karnataka, is now advancing negotiations to secure a majority stake in Pegatron’s Chennai facility, signaling deeper integration into Apple’s supply chain.
India Emerges as a Strategic Export Base
Apple’s manufacturing ramp-up has brought substantial economic benefits to India:
- Exports Hit 10 Billion USD: Apple exported over 10 billion USD worth of iPhones from India in FY24—the highest ever by a single company in the country.
- Job Creation: Over 175,000 direct jobs have been created in the Apple manufacturing ecosystem in India, with a remarkable 72% filled by women.
- PLI Scheme Boost: Apple’s contract manufacturers have leveraged India’s Production-Linked Incentive (PLI) scheme to scale operations efficiently.
Apple’s Long-Term Vision for Growth in India
The 14 billion USD milestone is just the beginning of Apple’s expansion in India. The company’s future roadmap includes:
- 40 Billion USD Production Target: Apple aims to scale its India production over fivefold in the next 4–5 years.
- Diversification with AirPods: The company plans to begin local production of AirPods starting next year.
- Retail Strategy: After debuting its first stores in Mumbai and New Delhi, Apple intends to open more physical outlets across India by 2027, signaling deeper market commitment.
India’s Rise in the Global Tech Supply Chain
Apple’s strategic pivot to India is a defining moment for global electronics manufacturing. With robust policy support, an expanding skilled workforce, and a focus on export-driven growth, India is emerging as a serious contender to China in the high-tech manufacturing space.
This shift not only enhances Apple’s supply chain resilience but also positions India as a central hub for premium device assembly in the years ahead.