In light of rising geopolitical tensions, Apple Inc. exported more iPhones from India than it did from April to December, amounting to more than twice the amount exported from China during the previous fiscal year.
Foxconn Technology Group and Wistron Corp. shipped more than $1 billion worth of Apple’s high-profile products overseas in the first nine months of the fiscal year ending March 2023 . By the end of January, Pegatron Corp., another significant Apple contract manufacturer, is on track to export approximately $500 million worth of the devices, the sources said on condition of anonymity because their statements revealed sensitive information.
Apple’s exponentially increasing export figures show how it is expanding operations outside of China, where the instability at Foxconn’s main facility in Zhengzhou exposed supply chain flaws and forced the Cupertino, California-based business to lower output forecasts.
The most valuable business in the world, Apple, only started producing its most recent iPhone models in India last year, deviating from its custom of keeping much of that work for Chinese behemoths owned by its vitalcomplex Taiwanese assemblers, notably Foxconn.
India is an excellent contender to take on additional electronics production because of its sizable manpower, government backing, and flourishing domestic market. The major supplier to Apple, Foxconn, started setting up facilities in the nation more than five years ago in preparation for the need to expand its geographic reach.
Apple’s contract manufacturers use plants in southern India to produce the iPhones at the moment. But production in the nation is slowly picking up pace. Bloomberg Intelligence believes that in 2021, 3 million devices were produced in India, as opposed to 230 million in China.
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Foxconn started producing the iPhone 14 in India a few months ago, ahead of schedule, following an unexpectedly seamless production rollout that reduced the time difference between Chinese and Indian output from months to just a few weeks. The iPhones 11 through 14 are assembled in India by Apple’s three Taiwanese partners.
However, leaving China, where Apple has spent nearly two decades establishing a solid supply chain, is not simple. According to a Bloomberg Intelligence analysis, moving only 10% of Apple’s production capacity from China, where over 98% of the company’s iPhones are built, would take about eight years.
All smartphone manufacturers who receive financial incentives as part of Modi’s campaign are tracked by India in terms of production and exports.
