Apple Inc.’s iPhone exports from India from April to December exceeded $2.5 billion. It marks a nearly two-fold increase from the total exports recorded in the last fiscal year. This trend highlights the tech behemoth’s strategic move away from China, driven by intensifying geopolitical uncertainties. If it sounds interesting to you, follow rajkotupdates.news:apple-iphone-exports-from-india-doubled-between-april-and-august.
According to informed sources, Foxconn Technology Group and Wistron Corp., two of Apple’s key contract manufacturers, each exported over $1 billion worth of the flagship Apple devices in the first three quarters of the fiscal year ending in March 2023.
Pegatron Corp., another vital assembler for Apple, is predicted to export approximately $500 million worth of devices by January’s end, the sources added. The assembler will request anonymity due to the confidential nature of the information.
The escalating export figures from Apple depict the company’s swift expansion of operations outside China. This comes after disruptions at Foxconn’s primary facility in Zhengzhou exposed frailties in Apple’s supply chain. It further necessitates a downward revision of production forecasts.
This situation exacerbated a broader issue concerning the diminishing demand for electronics as consumers become wary of a possible global economic downturn.
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In a significant departure from its usual reliance on Chinese factories, Apple initiated the assembly of its most recent apple iphone models in India just last year. India is only contributing a small fraction of the total iphone production. Still, the increasing exports are promising for India’s aspirations to become a global manufacturing hub. India’s Prime Minister Narendra Modi has himself strongly advocated the vision.
There are risks of dependency on a single country. The reasons are China’s strict Covid Zero policies and violence at Zhengzhou plant, the world’s largest production centre for iPhones. As a result, global companies like Apple are actively exploring manufacturing alternatives.
With its large workforce, political support, and thriving local market, India emerges as a strong contender for electronics manufacturing. Foxconn, the largest supplier for Apple, foresaw this need and started establishing facilities in India over five years ago.
Government incentives have also played a crucial role in attracting these manufacturing giants. The production-linked incentives schemes are essential parts of Modi’s plan to transform India into an electronics manufacturing hub. Under these schemes, Foxconn received benefits worth Rs 3.6 billion ($44 million) in the first year.
While iphone production in India is at its nascent stage, there are plans to increase the manufacturing of other products. Tablets and laptops are included in the plans, to attract other major brands. The aim is to entice Apple to manufacture a broader range of products within the country, including earphones and MacBooks.
Moving production away from China, where Apple has established a robust supply chain over nearly two decades, is daunting. However, Apple’s strategy seems clear as it prepares to open its maiden retail store in India in 2023. The tech giant aims to further solidify its presence in this burgeoning market. To get the latest updates like rajkotupdates.news:apple-iphone-exports-from-india-doubled-between-april-and-august, stay tuned.