Outbound exports of India-made iPhones are expected to reach US$2.5 billion in the fiscal year ending March 2023, nearly doubling the prior year, according to sources by Bloomberg News.
Apple Inc (NASDAQ: AAPL) has begun this year to move major parts of its manufacturing process to India and Brazil in order to navigate China’s strict COVID policies, making the supply chain vulnerable to shocks.
Since April, India’s exports have surpassed US$1 billion, highlighting the tech giant’s expanding reliance on the South Asian country amid New Delhi’s push for local manufacturing.
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Apple began producing the iPhone 13 in India earlier this year, and the company said last week that it intends to produce the next iPhone 14 in the country as well. However, the smartphone brand reportedly told its suppliers not to proceed with efforts to increase production of the new iPhone models as the projected surge in demand failed to materialize.
Since 2017, Apple has been producing iPhones in India.
Chinese newspaper casts doubt on ‘made in India’ iPhones
Chinese newspaper People’s Daily tried to downplay the manufacturing shift, saying the American smartphone brand might not find it easy doing business in India.
“Apple’s move to India may be successful, but the process must not be smooth, as it depends on how India can adjust its labor policies,” the paper noted. “If Apple’s presence is to survive and grow, it must be based on India’s improved policies and legal system, which will be beneficial for more foreign companies to enter India in the future.”
The American firm works with its contractors Foxconn for the iPhone 12, 13, and 14 and Wistron for the iPhone SE models in India. However, the retail prices won’t budge that much as components are mostly sourced still outside India, including China.
Apple last traded at US$145.82 on the Nasdaq.
Information for this briefing was found via Bloomberg, Hindustan Times, and the sources and companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
