India’s Apple iPhone exports treble, supporting Modi’s “alternative to China” strategy, according to a report

According to those acquainted with the situation, Apple Inc.’s iPhone exports from India have surpassed $1 billion in the five months since April, indicating that the South Asian country is making headway in its effort to become a major player in the electronics manufacturing industry.

According to the sources, at the current pace, export shipments of iPhones manufactured in India, primarily to Europe and the Middle East, are expected to exceed $2.5 billion in the 12 months leading up to March 2023.

The persons, who asked not to be identified because the information is private, claimed that this is almost twice the $1.3 billion in iPhones that India exported in the year through March 2022.

Despite contributing only a small portion of the world’s iPhone production, Prime Minister Narendra Modi’s goal to position India as a viable alternative to China as the world’s factory is encouraged by expanding exports. Due to tensions with the US government and nationwide lockdowns imposed by Xi Jinping’s administration, which have hindered economic activity, Apple, which has historically produced the majority of its iPhones in China, is looking for alternatives.

“The healthy growth in Apple’s manufacturing scale and export shows India is gradually assuming an important position in the company’s China plus one strategy,” said Navkendar Singh, an analyst at tech researcher IDC. “And for India, this a big sign of the success of its financial incentives scheme.”

An email for comment from Apple representatives didn’t receive a response right away. Prior to Modi’s $6 billion incentive campaign in 2020, the Cupertino, California-based corporation had long toyed with the notion of producing its coveted iPhones in India. Modi’s incentive push eventually convinced the US tech giant to convince its suppliers to increase output.

In present, Foxconn Technology Group, Wistron Corp., and Pegatron Corp., three of Apple’s principal Taiwanese contract manufacturers, build iPhones at facilities in Southern India. A federal government programme awarded industry subsidies to all three.

India is undoubtedly still far behind China. Bloomberg Intelligence believes that 3 million iPhones were produced in India last year, as opposed to 230 million in China.

The iPhone 11, 12, and 13 models were among the smartphones sent from India between April and August of this year, and the new 14 line will shortly start to be exported, according to the people. After a very seamless production rollout that reduced the gap between Chinese and Indian output from months to just a few weeks, Apple started manufacturing the iPhone 14 in India last month, a month earlier than expected.

Beyond smartphones, India is developing plans to increase financial incentives for tablet and laptop manufacturers in an effort to get Apple to manufacture MacBooks and iPads domestically and attract foreign investment.

However, leaving China, where Apple has spent nearly two decades establishing a strong 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.

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