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Apple iPhone Exports from India Doubled Between April and August

If you are an Apple fan or a tech enthusiast, you might be interested to know that Apple has been increasing its iPhone production and exports from India in recent months. According to various sources, Apple’s iPhone exports from India doubled between April and August 2021, reaching a total of $2.5 billion in value. This is a significant achievement for both Apple and India, as it shows the potential of India as a manufacturing hub and an alternative to China.

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Why is Apple making iPhones in India?

Apple has been making iPhones in India since 2017, when it started assembling the iPhone SE at a Wistron plant in Bangalore. Since then, Apple has expanded its operations in India with the help of its other contract manufacturers, Foxconn and Pegatron. Apple now makes several iPhone models in India, including the iPhone 11, 12, 13 and 14.

There are several reasons why Apple is making iPhones in India. One is to avoid the high import duties that India imposes on foreign-made smartphones, which can add up to 20% to the cost of an iPhone. By making iPhones locally, Apple can lower its prices and make its products more affordable and competitive in the Indian market.

Another reason is to diversify its supply chain and reduce its dependence on China, where most of its iPhones are still made. China has been facing various challenges in recent years, such as trade tensions with the US, labor shortages, environmental issues and Covid-19 outbreaks. These factors have disrupted Apple’s production and delivery schedules and affected its sales and profits. By making iPhones in India, Apple can mitigate some of these risks and have more flexibility and resilience in its operations.

A third reason is to take advantage of the incentives offered by the Indian government to boost electronics manufacturing in the country. In 2020, India launched a $6 billion scheme called Production Linked Incentive (PLI), which provides cash subsidies to companies that manufacture smartphones and other electronic devices in India. Apple and its suppliers are among the beneficiaries of this scheme, which aims to make India a global hub for electronics manufacturing and exports.

What are the benefits of making iPhones in India?

Making iPhones in India has several benefits for both Apple and India. For Apple, it means:

– Lower costs: By making iPhones locally, Apple can save on import duties, transportation costs and labor costs. According to some estimates, making an iPhone in India can be up to 12% cheaper than making it in China.

– Higher margins: By lowering its costs, Apple can increase its profit margins on each iPhone sold in India or abroad. This can help Apple boost its revenues and earnings in a competitive and saturated smartphone market.

– Larger market share: By lowering its prices, Apple can attract more customers and increase its market share in India, which is one of the fastest-growing and largest smartphone markets in the world. According to Counterpoint Research, Apple’s market share in India rose from 2% in 2019 to 4% in 2020, thanks to the launch of the affordable iPhone SE and iPhone 11 models.

– Better customer satisfaction: By making iPhones locally, Apple can improve its customer service and satisfaction levels in India. It can offer faster delivery times, better warranty support and easier repairs and replacements for its Indian customers.

– Stronger brand image: By making iPhones locally, Apple can enhance its brand image and reputation in India. It can show that it cares about the Indian market and supports the local economy and employment.

For India, it means:

– More jobs: By making iPhones locally, Apple and its suppliers create more jobs for Indian workers. According to some reports, Apple’s suppliers employ about 200,000 workers in India, most of whom are women. This number is expected to grow as Apple expands its production capacity and product range in India.

– More exports: By making iPhones locally, Apple contributes to India’s exports of smartphones and other electronic devices. According to Bloomberg, Apple exported more than $2.5 billion worth of iPhones from India from April to December 2020, nearly twice the previous fiscal year’s total. This helps India reduce its trade deficit and earn foreign exchange.

– More investments: By making iPhones locally, Apple attracts more investments from its suppliers and other related companies to India. According to Reuters, Apple’s suppliers have committed to invest about $900 million over five years to expand their facilities.