iPhone Exports From India Set to Double to $2.5 Billion YoY by March 2023 [Updated]

[MacRumors]

Apple's iPhone exports from India have amounted to $1 billion in the five months since April, as the country makes headway in its bid to become a major electronics manufacturing hub for Apple (via Bloomberg).

According to Bloomberg's sources, shipments of India-made iPhones to Europe and the Middle East are set to reach $2.5 billion by March 2023, almost doubling the $1.3 billion worth of iPhones the country exported in the year through March 2022.

While small by China's standards, India's increasing iPhone output signals the strength of Prime Minister Narendra Modi's local manufacturing policies and Apple's willingness to plough investment into the country as an alternative to China's electronics assembly hegemony and the disruptive geopolitical issues that come with it.

"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," Navkendar Singh, an analyst at tech researcher IDC, told Bloomberg. "And for India, this a big sign of the success of its financial incentives scheme."

Apple's Taiwanese assembly partners Foxconn, Wistron, and Pegatron all have iPhone manufacturing plants in India, where iPhone 11, iPhone 12, iPhone 13, and most recently iPhone 14 models are being produced. Apple recently announced it had begun iPhone 14 assembly in the country, while reducing the delay between Chinese and India output from months to weeks.

In diversifying its production lines away from China, Apple is playing a long game that won't see a major impact on its supply chain for many years. Bloomberg recently reported that it would take around eight years to move just 10% of Apple's production capacity out of China, where about 98% of iPhones are still made.

Update 11/5: According to Nikkei Asia, Apple is also asking suppliers to move some AirPods and Beats headphone production to India for the first time, with partners Luxshare and Foxconn poised to switch assembly of said products to the country.

Article Link: iPhone Exports From India Set to Double to $2.5 Billion YoY by March 2023 [Updated]

 

[DelayedGratificationGene]

Great job Tim.

 

[CB1234]

Once India starts shipping significant percentage of Apple's iPhones, they too will have their own geo political problems, for Apple to deal with..

But this is good news and going forward, perhaps a sign of less dependency on any one country...

 

[Marcian]

Apple's iPhone exports from India have amounted to $1 billion in the five months since April, as the country makes headway in its bid to become a major electronics manufacturing hub for Apple (via Bloomberg).

According to Bloomberg's sources, shipments of India-made iPhones to Europe and the Middle East are set to reach $2.5 billion by March 2023, almost doubling the $1.3 billion worth of iPhones the country exported in the year through March 2022.

While small by China's standards, India's increasing iPhone output signals the strength of Prime Minister Narendra Modi's local manufacturing policies and Apple's willingness to plough investment into the country as an alternative to China's electronics assembly hegemony and the disruptive geopolitical issues that come with it.
Apple's Taiwanese assembly partners Foxconn, Wistron, and Pegatron all have iPhone manufacturing plants in India, where iPhone 11, iPhone 12, iPhone 13, and most recently iPhone 14 models are being produced. Apple recently announced it had begun iPhone 14 assembly in the country, while reducing the delay between Chinese and India output from months to weeks.

In diversifying its production lines away from China, Apple is playing a long game that won't see a major impact on its supply chain for many years. Bloomberg recently reported that it would take around eight years to move just 10% of Apple's production capacity out of China, where about 98% of iPhones are still made.

Article Link: iPhone Exports From India Set to Double to $2.5 Billion YoY by March 2023

After what US dis to Huawei, China should ban exports of any components which can be used to produce iPhones outside China.

 

[Kissmo1980]

Ahhh... Ti(m) is planning something new next year: The Secret Life of Ti(m) - iPhone Piscine Patel Edition

 

[GeoStructural]

But this is good news and going forward, perhaps a sign of less dependency on any one country...

Apparently if I express my preference as a consumer for iPhone production in one country or another it is considered political, so I will refrain. From Apple's viewpoint, not mine, surely diversifying production makes a lot of sense economically.

Diversifying makes a lot more sense geopolitically than economically, but yes, it can potentially save economic losses in undesirable scenarios.

I also believe this is a good move, but anyone who has visited these Chinese industrial areas will be able to recognize that there are big reasons why they dominate manufacturing, they have created their cities for it, policies, rail lines, harbors, and a strong working class ethic.

 

[VulchR]

Apparently if I express my preference as a consumer for iPhone production in one country or another it is considered political, so I will refrain. From Apple's viewpoint, not mine, surely diversifying production makes a lot of sense economically.

 

[ilikewhey]

interesting to point out that india only makes the 14 models, the same models that apple has scaled back due to lower than expected demand.

 

[4odomi]

Apple's iPhone exports from India have amounted to $1 billion in the five months since April, as the country makes headway in its bid to become a major electronics manufacturing hub for Apple (via Bloomberg).

According to Bloomberg's sources, shipments of India-made iPhones to Europe and the Middle East are set to reach $2.5 billion by March 2023, almost doubling the $1.3 billion worth of iPhones the country exported in the year through March 2022.

While small by China's standards, India's increasing iPhone output signals the strength of Prime Minister Narendra Modi's local manufacturing policies and Apple's willingness to plough investment into the country as an alternative to China's electronics assembly hegemony and the disruptive geopolitical issues that come with it.
Apple's Taiwanese assembly partners Foxconn, Wistron, and Pegatron all have iPhone manufacturing plants in India, where iPhone 11, iPhone 12, iPhone 13, and most recently iPhone 14 models are being produced. Apple recently announced it had begun iPhone 14 assembly in the country, while reducing the delay between Chinese and India output from months to weeks.

In diversifying its production lines away from China, Apple is playing a long game that won't see a major impact on its supply chain for many years. Bloomberg recently reported that it would take around eight years to move just 10% of Apple's production capacity out of China, where about 98% of iPhones are still made.

Article Link: iPhone Exports From India Set to Double to $2.5 Billion YoY by March 2023

Like all manufacturers, Apple are just looking for more slave labor 😡

 

[4odomi]

Expanding sales just like the US in 2007, 2008, 2009. Just one difference though India has 5x the population of the US.

I think you've missed the whole point of the article, it's not about expanding sales in India 🤣

 

[ilikewhey]

Expanding sales just like the US in 2007, 2008, 2009. Just one difference though India has 5x the population of the US.

majority of indians are too budget sensitive for iphones. not to mention you missed the point of this article completely since its talking about exporting not india domestic consumption.

 

[Kottu]

Like all manufacturers, Apple are just looking for more slave labor 😡

I agree with you. A "non-engineering graduate" get a monthly salary of around 100USD. That's why workers protested in 2020. (In neighbouring state, an uneducated worker can earn 3-4 times of it) I hope things would be better now. Recently, Indian Industrial giant TATA made a collaboration with another iPhone contractor to start producing iPhones. TATA is a good employer.

 

[Kottu]

majority of indians are too budget sensitive for iphones. not to mention you missed the point of this article completely since its talking about exporting not india domestic consumption.

Yes they are. But the middle class in India is larger than US population. iPhone is becoming more popular among middle and upper class. Many are against Chinese companies so, people who used to buy One+, Xiaomi etc are moving towards Apple and Samsung.

 

[senttoschool]

I will not buy an iPhone manufactured in India. I don't believe the quality will be nearly as high as the ones manufactured in China.

 

[ilikewhey]

Yes they are. But the middle class in India is larger than US population. iPhone is becoming more popular among middle and upper class. Many are against Chinese companies so, people who used to buy One+, Xiaomi etc are moving towards Apple and Samsung.

in india the middle class range is 2 lakhs rupees to 10 lakhs rupees. which roughly translates to 2k usd to 12k usd. for indian standard and regions around that area sure thats a middle class.

 

[VulchR]

I will not buy an iPhone manufactured in India. I don't believe the quality will be nearly as high as the ones manufactured in China.

As I recall, Apple had quality control issues with parts from the PRC at first. They merely rejected parts out of tolerance and soon the companies in the PRC got the message about quality control. There's no reason to believe that the same can't happen in India. The question is whether it is a good thing.

 

[drzen]

Nice graphic image in the original article, whoever designed it.

 

[Sf844]

The Indians are the new docile Chinese

 

[Kottu]

in india the middle class range is 2 lakhs rupees to 10 lakhs rupees. which roughly translates to 2k usd to 12k usd. for indian standard and regions around that area sure thats a middle class.

Unfortunately, the actual income of household in India is not precise like in the western world. So, the numbers you can find online is nowhere near to the actual number. Millions of Indians who live and work abroad don't show their income to the Indian government. So, there are many factors to consider.

 

[ilikewhey]

Unfortunately, the actual income of household in India is not precise like in the western world. So, the numbers you can find online is nowhere near to the actual number. Millions of Indians who live and work abroad don't show their income to the Indian government. So, there are many factors to consider.

oh ofcourse, hiding money from the gov't is old as civilization gets. but if thats the case, how can anyone comfortably say indian middle class is more than us population, especially when there are different type of middle class measurement being used. the stats of 2 lakhs to 12 lakhs rupee is from here

lets say that figure is inaccurate, and the actual figure is 2x, lets say 4 lakhs to 24 lakhs, which is 30k usd. thats still below even the blue collar class of workers here in the us. for example someone working at mcdonald full time here in the states will make 38k, if i'm only making 38k usd a year, it will be extremely financially irresponsible for me to spend 80,000 rupees per phone for my family.

 

[Kottu]

oh ofcourse, hiding money from the gov't is old as civilization gets. but if thats the case, how can anyone comfortably say indian middle class is more than us population, especially when there are different type of middle class measurement being used. the stats of 2 lakhs to 12 lakhs rupee is from here

lets say that figure is inaccurate, and the actual figure is 2x, lets say 4 lakhs to 24 lakhs, which is 30k usd. thats still below even the blue collar class of workers here in the us. for example someone working at mcdonald full time here in the states will make 38k, if i'm only making 38k usd a year, it will be extremely financially irresponsible for me to spend 80,000 rupees per phone for my family.

Cost of living for an average family of four (Kids in private school)in country side is under 500 USD per month. So, Even if you earn 20K USD, you can afford a couple of iPhones.
In the 90's when I was studying in The Netherlands, I remember my teacher saying that the rich people in India was around 80 million which was more than entire German population back then.
India is like android phones, fragmented.

 

[ilikewhey]

Cost of living for an average family of four (Kids in private school)in country side is under 500 USD per month. So, Even if you earn 20K USD, you can afford a couple of iPhones.
In the 90's when I was studying in The Netherlands, I remember my teacher saying that the rich people in India was around 80 million which was more than entire German population back then.
India is like android phones, fragmented.

thats 6k a year, does indians not pay taxes? quick google search shows 32% for annual income tax, so if you make 20k usd a year, 6400 is taxed, and another 6k for living standards, that leaves 7-8k, are you saying the average indian citizens are that financially irresponsible, that they willing to pay 1k for iphone when they only saving 7-8k annually?

 

[_Spinn_]

Good to move away from China.

 

[svish]

Happy to see an increased production of iPhones in India.

 

[Sf844]

thats 6k a year, does indians not pay taxes? quick google search shows 32% for annual income tax, so if you make 20k usd a year, 6400 is taxed, and another 6k for living standards, that leaves 7-8k, are you saying the average indian citizens are that financially irresponsible, that they willing to pay 1k for iphone when they only saving 7-8k annually?

People in India don’t make 20k.

Only 121M out of 1.4Bn make more than $7K

The Indians use to go around the internet spreading this stuff because they’re very nationalist and are always pumping the image of their country, as if somebody cared.

Recently I saw an Indian arguing their universities were top 15 worldwide. Whatever…

I personally think the Chinese are way nicer culturally, although politically they’re in a very bad position.