Apple Exports $6 Billion in India-Made iPhones, Shifts Away from China
In a strategic pivot, Apple has exported nearly $6 billion worth of iPhones manufactured in India, marking a significant departure from its traditional reliance on China. This move comes amid global supply chain disruptions and mounting geopolitical tensions, as the tech giant seeks to diversify its production footprint. The decision signals Apple’s confidence in India’s manufacturing potential and reflects the company’s long-term vision to minimize supply chain vulnerabilities while fostering local production capabilities.
By shifting more production to India, Apple not only enhances its resilience but also supports India’s growing tech ecosystem, tapping into the country’s skilled workforce and favorable government policies. This transition is expected to further integrate India into Apple’s global supply chain, creating job opportunities and solidifying India as a vital manufacturing hub for the brand. As Apple navigates external pressures, this shift underscores its commitment to maintaining stability and innovation in a rapidly changing market.
Editor’s Note: Apple has exported nearly $6 billion worth of iPhones manufactured in India, marking a strategic shift away from its reliance on China amid supply chain disruptions and geopolitical tensions. This move highlights Apple’s confidence in India’s manufacturing capabilities, supporting local production, job creation, and reinforcing India’s role as a key player in the company’s global supply chain.
India to Boost Local IT Hardware Production with New Incentives and Import Quota Adjustments
The Indian government is set to ramp up domestic production of IT hardware by introducing concessions in import quotas for companies enhancing local manufacturing under the production-linked incentive (PLI) scheme. During recent discussions with industry stakeholders, officials asked companies to present production plans for the coming fiscal year for products such as laptops, tablets, and servers. This move is aimed at increasing domestic value addition without major disruptions, officials say, as India seeks to reduce its reliance on imports, particularly from China, and bolster local manufacturing in the IT hardware sector.
To support a smooth transition, the government extended the import management system (IMS) deadline for certain IT products to December 31, giving companies more time to adjust. This extension allows the industry to continue its current import practices while the government finalizes new import guidelines in consultation with the electronics, commerce, and finance ministries. The government is expected to release these guidelines for public consultation soon, and it may consider a further 90-day extension if necessary to ensure business continuity.
Editor’s Note: The Indian government is set to boost local IT hardware production by offering concessions on import quotas for companies participating in the production-linked incentive (PLI) scheme. The move aims to reduce reliance on imports, especially from China, and strengthen domestic manufacturing of products like laptops, tablets, and servers. To ease the transition, the government has extended the import management system (IMS) deadline for certain IT products to December 31, allowing more time for companies to adjust before new import guidelines are finalized.
Indian IT Firms Turn GCC Threat into Growth Opportunity through Collaborations
As global capability centers (GCCs) expand across India, major IT companies such as Infosys, HCLTech, and Wipro are capitalizing on the shift by partnering with multinationals to support these in-house tech hubs. While GCCs initially appeared as a potential threat to traditional outsourcing models, Indian IT giants are turning the situation to their advantage by collaborating with these centers, mitigating any revenue impact and capturing more of the growing domestic IT market. Industry analysts view GCCs as a significant revenue driver for Indian IT, as demand from primary markets like the US and Europe weakens.
The rise of GCC partnerships is proving profitable, with revenue from these collaborations steadily increasing. Ramkumar Ramamoorthy, partner at Catalincs, noted that GCCs are becoming major contributors to the Indian IT landscape, potentially adding $1 billion or more in annual revenue for top players. A recent report from US-based Everest Group places GCC-related revenue at $20 billion, with Indian centers making up the lion’s share. For Indian IT companies, this trend signifies a lucrative shift as GCCs continue to embrace third-party support.
Editor’s Note: Indian IT firms like Infosys, HCLTech, and Wipro are turning the rise of global capability centers (GCCs) into a growth opportunity by collaborating with multinationals to support in-house tech hubs. These partnerships are boosting revenue, with GCC-related income expected to add over $1 billion annually for top Indian IT players, contributing to the growing importance of domestic IT in an evolving global market.
Foxconn Procures $31.8 Million Equipment for iPhone 16 Pro Production in India
Taiwanese electronics giant Foxconn has invested $31.8 million (approximately Rs 267 crore) in equipment for its Tamil Nadu facility as it prepares to begin manufacturing Apple’s iPhone 16 Pro Series. This marks a significant milestone as it will be the first time Apple’s high-end iPhone Pro models will be produced outside of China. According to a regulatory filing, Foxconn Hon Hai Technology India Mega Development Private Limited, a subsidiary of Foxconn, acquired the necessary machinery from Apple Operations Limited to increase production capacity at its Indian unit.
The move follows Apple’s recent announcement that it will begin producing the “made in India” iPhone 16 Pro and iPhone 16 Pro Max models in Tamil Nadu, with shipments expected to start later this month or in early November. This shift is part of Apple’s ongoing efforts to diversify its supply chain and reduce dependence on China. Foxconn’s investment in new equipment signals the growing importance of India as a manufacturing hub for global technology companies.
Editor’s Note: Foxconn has invested $31.8 million in equipment for its Tamil Nadu facility to begin manufacturing Apple’s iPhone 16 Pro Series, marking the first production of high-end iPhone models outside China. The move supports Apple’s efforts to diversify its supply chain, with production of the “Made in India” iPhone 16 Pro and Pro Max expected to begin in late October or early November. This investment underscores the growing significance of India as a key manufacturing hub for global technology companies.
Apple Moves to Onboard Aequs as Indian Supplier for MacBook and Apple Watch Components
Karnataka-based contract manufacturer Aequs has entered the trial phase to become an Apple supplier, positioning it as the second Indian company in Apple’s supply chain after Tata Electronics. Sources indicate that Aequs is currently producing trial batches of MacBook enclosures and mechanical components for the Apple Watch, which have been sent for a “fitment check” to an Apple-designated supplier in Vietnam. If successful, Aequs will be the only Indian firm supplying components for MacBooks and Apple Watches, highlighting Apple’s continued efforts to diversify its supply chain within India.
Last December, reports surfaced of Apple’s advanced discussions with Aequs, with experts citing the company’s ability to produce both high-precision and low-engineering products, such as iPhone cases. The onboarding of Aequs aligns with Apple’s strategy to strengthen local partnerships and tap into India’s manufacturing capabilities. Both Apple and Aequs have yet to comment on the development.
Editor’s Note: Aequs, a Karnataka-based contract manufacturer, has entered the trial phase to become an Apple supplier, producing components for MacBooks and Apple Watches. If successful, Aequs will become the second Indian company in Apple’s supply chain, following Tata Electronics, as Apple continues to diversify its production within India.
Apple Supplier Jabil to Invest $275 Million for New Manufacturing Units in India
Apple’s supplier Jabil is set to increase its manufacturing footprint in India with an investment of $250-$275 million (Rs 2,102-Rs 2,312 crore) to establish two additional units within the next three to four years. Currently operating two facilities in Pune, Maharashtra, Jabil manufactures plastic casings for Apple AirPods and various electronic components like WiFi, NFC, and RFID modules. The company has also signed a memorandum of understanding with the Tamil Nadu government for a new electronics manufacturing facility in Tiruchirappalli, with an initial investment of Rs 2,000 crore.
As demand for consumer electronics and e-mobility products surges in India, Jabil’s expansion aligns with Apple’s strategy to reduce its dependence on Chinese suppliers by diversifying production to other countries. Over recent years, Apple has collaborated with multiple suppliers, including Tata Electronics, Foxconn, and Zhen Ding Technology, to bolster its production capabilities in India, where it sees significant market potential. Jabil’s upcoming units may focus on manufacturing and assembling components for Apple chargers, older iPhone models, AirPods, and possibly Apple Watches and Macs.
Editor’s Note: Apple supplier Jabil is investing $250-$275 million to expand its manufacturing footprint in India with two new facilities over the next three to four years. This expansion, which includes a new facility in Tiruchirappalli, aligns with Apple’s strategy to diversify its supply chain and reduce dependence on China, with Jabil expected to produce components for AirPods, iPhones, and potentially other Apple products.