New Delhi: iPhone maker Apple Inc. has exported nearly $6 billion of India-made iPhones in the six months signaling at expanding manufacturing in the country reducing its dependency on China, Bloomberg reported citing sources.
The US company is reported to be on the path to cross annual exports about $10 billion of fiscal 2024.
The increase in exports pointed to the fact that India has emerged as the Apple’s key unit while its reliance on China is reducing amid Beijing’s tensions with the US.
While Taiwan's Foxconn Technology Group’s unit located on the outskirts of Chennai is the top supplier, two others Pegatron Corp. and Tata Electronics assemble iPhones in South India.
Tata Electronics, the manufacturing arm of Tata Group, exported nearly $1.7 billion in iPhones from its factory in Karnataka state from April to September.
Tata Electronics became India’s first assembler of iPhone after Tata acquired the unit from Wistron Corp. last year.
Prior to Apple expended its manufacturing in the country, India's smartphone exports to the US annually was ‘a meager $5.2 million’ and now exports to the US in product category is at $2.88 billion in the first five months of this fiscal year, according to the report.
Despite this boost in exports, Apple has garnered just below 7% of India's smartphone market. India’s smartphone market is still dominated by Chinese brands like Xiaomi, Oppo and Vivo.
The government’s subsidies helped Apple assemble its phones in the country, according to the report.
Apple is planning to open new retail stores in Bangalore and Pune.
Apple’s chief Tim Cook opened its first store in Mumbai and New Delhi last year.
Following which, Apple’s annual India revenue rose to a record ‘8 billion in the year through March.’