**India**: Apple Inc. has achieved a $22 billion manufacturing milestone in India for the fiscal year ending March 2025, marking a 60% production value increase from the previous year and showcasing a pivotal shift in its global manufacturing strategy amidst geopolitical tensions and government incentives.
Apple Inc. has marked a significant milestone in its manufacturing strategy by assembling iPhones worth US$22 billion in India during the fiscal year ending March 2025. This represents a remarkable 60% increase in production value from the previous year, indicating a significant shift in the company’s operational focus. Currently, approximately 20% of all iPhones are made in India, as the tech giant seeks to reduce its substantial dependence on China.
Most of this production is concentrated at Foxconn’s facility located in southern India, supplemented by contributions from the Tata Group. Notably, Tata has expanded its role in the Apple supply chain following the acquisition of Wistron and the management of Pegatron’s operations within the country. Apple has successfully diversified its production to include its entire iPhone lineup, encompassing high-end models, within Indian manufacturing facilities.
In terms of exports, India shipped US$17.4 billion worth of iPhones during the same fiscal period. This growth has been bolstered by government incentives as part of Prime Minister Modi’s initiative to transform India into a global manufacturing hub.
Apple’s current manufacturing operations in India represent a strategic pivot from its earlier approaches that predominantly favoured production in the United States. Historically, the company operated manufacturing facilities domestically, with an early notable example being a plant in Carrollton, Texas, that opened in 1980. However, by 2004, Apple had closed its last U.S. production line, shifting to overseas manufacturing predominantly in China, primarily due to the country’s ability to rapidly scale workforce and production efficiency.
The current production value in India addresses not only the need for diversification in response to geopolitical tensions but also the drive for manufacturing efficiency. This dual-hub model lessens Apple’s susceptibility to disruptions that could arise from being overly dependent on any one region.
Apple’s expansion in India also reflects a multifaceted economic ecosystem development beyond simple labour cost advantages. The rapid increase in production in India, now accounting for one in five iPhones globally, has been supported by significant government initiatives. These are reminiscent of the advantages previously established in Zhengzhou, China, where Apple benefited from substantial subsidies. Notably, improvements in customs clearance processes have significantly reduced processing times, aligning with the country’s efforts to enhance its manufacturing capabilities.
Amid these developments, Apple’s operations face the looming threat of tariffs that could impact pricing. In recent logistics activities, the company airlifted over 1.5 million iPhones, approximately 600 tons, from India to the United States. This manoeuvre involved an increase in workforce shifts by 20% and special cargo flights, highlighting the financial implications of international trade policies on consumer electronics. Analysts have predicted that such tariffs could potentially increase iPhone prices by as much as 67%.
Apple’s recent actions, which include negotiating expedited customs procedures, demonstrate the company’s adaptability within a fast-changing global supply chain landscape. Such logistics operations illustrate the sensitivity of production strategies to political decisions, as many companies, including Apple, adopt a “China+1” strategy. This approach allows them to sustain Chinese manufacturing while concurrently developing alternative production centres elsewhere.
The recent activities around Apple in India’s market demonstrate the complexities and dynamic nature of global supply chains in navigating economic and political landscapes.
Source: Noah Wire Services
