According to Bloomberg News, Apple’s iPhone exports from India crossed $1 billion in five months since April 2022, reflecting the tech giant’s growing bet on the South Asian nation amid New Delhi’s push for local manufacturing. The outbound shipments of India-made iPhones, mainly to Europe and the Middle East, are set to reach $2.5 billion in the 12 months through March 2023, almost double when compared to the year through March 2022. The devices exported from India from April to August 2022 comprise iPhone 11, 12 and 13 models, and exports of the new 14 line will begin soon. This is a significant achievement for India as it aims to become a force in electronics manufacturing and an alternative to China as factory to the world.
This News is a big boost to PM Modi’s push for local manufacturing and benefits are eminent:
Some of the benefits are:
- It helps India become a smartphone export hub for countries including Germany, Russia, the UK, France, Italy, the Middle East and Japan1.
- It supports Prime Minister Narendra Modi’s plan to make India an alternative to China as factory to the world and attract foreign investment2.
- It reduces Apple’s dependence on China for iPhone production and diversifies its supply chain amid geopolitical tensions and Covid-related disruptions3.
- It enables Apple to offer lower prices and better services to its customers in India, which is the second biggest smartphone market in the world.
How many iPhones are made in India?
According to TechHQ, the Indian government has been encouraging smartphone companies to produce in India, pushing the number of “Made in India” phones higher. And according to News Arena India, exports of Made in India iPhones increased by 4 times in last one year as ₹40,000 crore iPhones were exported in last one year. Latest data shows India now accounts for 5% of total iPhone production and in 2020 the number was less than 1%. And a report by Tekdeeps shows that, the number of iPhones manufactured in India increased by 65 percent last year compared to the previous year, and a 162 percent increase in value was measured.
How does this impact China’s economy?
- It reduces China’s share of global iPhone production and exports, which could affect its revenues and employment.
- It increases the competition for China from India as a manufacturing hub for smartphones and other electronics.
- It exposes China to more geopolitical risks and trade tensions with the US and other countries that are seeking to reduce their dependence on Chinese supply chains.
- It challenges China’s dominance in the high-tech sector and its ambitions to become a leader in innovation and quality.