Apple significantly ups Indian iPhone production in shift away from China
One of the most significant shifts in global manufacturing is the ongoing effort to reduce reliance on Chinese Communist Party-controlled China. This trend has been further accelerated by recent developments in India regarding Apple production. Reports indicate that India’s iPhone exports surged by a third, reaching nearly $6 billion in value during the first six months of 2024. This substantial increase underscores the growing importance of India as a manufacturing hub for Apple, as the company seeks to diversify its supply chain and mitigate risks associated with over-reliance on a single communist country.
Sankalp Phartiyal for Bloomberg News:
Apple Inc.’s iPhone exports from India jumped by a third in the six months through September, underscoring its push to expand manufacturing in the country and reduce dependence on China.
The US company exported nearly $6 billion of India-made iPhones, an increase of a third in value terms from a year earlier, people familiar with the matter said, asking not to be named as the information is private. That puts annual exports on track to surpass the about $10 billion of fiscal 2024… The dollar figure refers to the devices’ estimated factory gate value, not the retail price.
Apple is expanding its manufacturing network in India at a rapid clip, taking advantage of local subsidies, a skilled workforce and advances in the country’s technological capabilities. India is a crucial part of the company’s effort to lessen its reliance on China, where risks have grown along with Beijing’s tensions with the US.
Phones 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, according to federal trade ministry data. Five years ago, before Apple expanded manufacturing in India, the country’s annual smartphone exports to the US were a meager $5.2 million…
Apple’s rising star in India contrasts with its flagging fortunes in China, whose economy has stuttered following harsh Covid-19 lockdowns and a property crisis… Apple assembled $14 billion of iPhones in India in the fiscal year through March 2024, doubling production and accelerating its drive to diversify beyond China. Of that, it exported roughly $10 billion worth of iPhones.
MacDailyNews Take: The less dependence Apple has on China, the better.
• The time to accelerate plans to move production out of China was November 9th 2016, but, hey, six years late is better than never! – MacDailyNews, December 4, 2022
• Diversify, diversify, diversify – especially away from CCP-controlled China. – MacDailyNews, October 19, 2022
• Apple cannot divest their dependence on China quickly enough (because they started years too late). – MacDailyNews. August 17, 2022
Former U.S. President Richard Nixon, who opened relations with China in the early 1970’s, just before his death in 1994 remarked on China: We may have created a Frankenstein.
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