Apple has begun large-scale production of new iPhone models in India, including the Pro series, just days after starting production of high-end iPhones in China, according to the Nikkei Asian Review. This move highlights Apple’s efforts in Asia to establish a supply chain outside of China.
Two sources familiar with the matter said that in addition to Apple’s efforts to mitigate geopolitical uncertainties, this move also reflects the technological advancements made by India’s supply network in recent years.
In the past, Apple has primarily manufactured the latest and high-end iPhone models in China, while Indian suppliers received orders for lower-end or older versions of iPhones. But as Apple seeks to enhance supply chain flexibility, this situation has recently changed.
Supply chain data indicates that approximately 30 million iPhones were assembled in India last year, with around 18 million produced in the first half of 2024 alone. These devices are not only targeted for the Indian market but also exported to the United States.
Ivan Lam, an analyst at Counterpoint Research, told Nikkei that India, as a significant location for smartphone assembly outside of China, has been greatly benefited. Major smartphone brands aspire to both diversify production and explore the Indian market.
Apple has not responded to Nikkei’s request for comment.
Apple is looking to expand its market share in India, which currently has a population of 1.4 billion people, with increasing income driving consumer spending. According to Counterpoint Research data, smartphones priced over $400 now account for 10% of India’s total smartphone shipments, up from 4% before the COVID-19 pandemic. These smartphones contribute to 35% of the total revenue in the smartphone market.
On June 23, Apple CEO Tim Cook stated on CNBC that India represents a “huge opportunity.”
Gene Munster, managing partner at Deepwater Asset Management, previously mentioned on CNBC that Cook is laying the groundwork for India to potentially surpass or match China in scale.
Apple’s strategy in India aims not only to sell products but also to make India an important manufacturing hub to reduce dependence on China.