Slow process: Several iPhone 16 models on display at an Apple Store in Shanghai. Apple is unlikely to shift production to the United States anytime soon, due to factors such as limited facilities and labour shortages. — AFP
NEW DELHI: Apple Inc assembled US$22bil worth of iPhones in India in the 12 months ended March, increasing production by nearly 60% over the previous year in a sign of continued diversification away from China.
The Cupertino, California-headquartered company now makes 20%, or one in five, of its prized iPhones in the South Asian country, according to people familiar with the matter who asked not to be identified as the information isn’t public.
The dollar figure represents the devices’ estimated factory gate value, rather than the marked-up retail price.
The ramp-up suggests the iPhone maker and its suppliers are accelerating a pivot to India from China, a process it began when harsh Covid lockdowns hurt production at Apple’s largest plant.
The bulk of India-made iPhones are assembled at Foxconn Technology Group’s factory in southern India.
Tata Group’s electronics manufacturing arm, which bought Wistron Corp and controls Pegatron Corp’s operations, is also a key supplier.
Of the total India production, Apple exported 1.5 trillion rupees (US$17.4bil) in iPhones from the region in the fiscal year through March 2025, the nation’s technology minister said on April 8.
Shipments of iPhones from India to the United States accelerated after President Donald Trump announced his plans for the so-called “reciprocal” tariffs in February, the people said.
Apple’s average India production and exports surged all through the fiscal year to March. Apple will increasingly prioritise iPhones from the India supply chain for its US customers, Bloomberg News reported previously.
The Trump administration late last Friday exempted electronics goods including smartphones and computers from its reciprocal tariffs.
That’s good news for companies such as Apple and Nvidia Corp, though the reprieve doesn’t appear to extend to Trump’s separate 20% duty on China, applied to pressure Beijing to crack down on fentanyl.
This also means iPhones made in India will not attract any duties as of now.
Barring the exceptions made last Friday, Trump’s cumulative levies on China remain at 145%, and will likely force companies such as Apple to intensify their supply chain shift.
But with nearly 200 suppliers and an overwhelming reliance on China, moves to other countries could take years to play out.
Despite Trump’s ambition to have iPhones made in the United States, Apple is unlikely to move production there any time soon due to factors including a shortage of facilities and labour needed to produce the devices.
In 2022, Bloomberg Intelligence estimated it would take eight years to move just 10% of Apple’s production capacity out of China.
Apple now assembles its entire iPhone range in India, including the more expensive titanium Pro models. — Bloomberg
