Apple iPhone exports from India zoom, thanks to subsidies

Apple's iPhone exports from India shot up by a third in the six-month period to September as the American giant seeks to cut its dependence on China and expand manufacturing in India.

The company exported India-made iPhones worth nearly $6 billion in this period, an increase of a third in value terms from a year earlier, media reports said.

It is expected the company will cross the $10-billion target for fiscal 2024.

Apple’s India expansion

Apple is expanding its manufacturing network in India, taking advantage of subsidies offered by the Indian government, a skilled workforce and advances in India's technological capabilities.

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It assembled iPhones worth $14 billion in India in the fiscal year till March 2024, doubling production.

Apple has been trying to cut its dependence on China mainly due to increasing tensions between Beijing and Washington. But it still relies on China for a bulk of its manufacturing and sales.

iPhones in south India

The iPhones are assembled in southern India by Taiwan's Foxconn Technology Group and Pegatron Corp as well as Tata Electronics.

Foxconn unit, based on Chennai’s outskirts, is the top supplier in India and accounts for half of the country's iPhone exports.

Tata Group's electronics manufacturing arm exported iPhones worth about $1.7 billion from its factory in Karnataka.

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Now top export to US

iPhones account for the bulk of India's smartphone exports and helped the product category become the top export to the US at $2.88 billion in the first five months of this fiscal year.

Five years ago, India’s annual smartphone exports to the US were only worth $5.2 million.

India's smartphone market is dominated by Chinese brands such as Xiaomi, Oppo, and Vivo.