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Apple is shifting manufacturing to India to diversify beyond China.
The India smartphone market is growing rapidly, offering Apple new opportunities.
Apple’s investment in India aligns with both long-term growth and supply chain resilience.
Apple has been associated with innovation, luxury, and being the largest tech company in Western markets. Recently, Apple has come under the spotlight in India, one of the fastest-growing economies and the second-largest smartphone market in the world.
This is not by chance.
The growing demand for premium smartphones has strengthened the presence of Apple in India, making it one of the company’s fastest-expanding markets. A confluence of manufacturing shifts, increasing opportunities, and bold investment has landed Apple's attention in India.
Also Read: Apple to Launch First Fully Made in India iPhone 17 Series this September
The tech giant has long used China as its leading production site. Circumstances beyond Apple's control, such as global supply chain instability, tariffs, and disruption associated with pandemics, have led Apple to rethink its predilection for China.
Apple manufacturing in India has accelerated since 2020 as manufacturing giants like Foxconn, Pegatron, and Wistron have set up production facilities in states like Tamil Nadu and Karnataka. According to government studies, 7% of Apple's iPhones are produced in India, and this number is likely to grow rapidly.
Even though Apple dominates the premium smartphone space in many developed countries, it has historically had a small market presence in India due to the price point. This is all changing.
As India's middle class is projected to top 500 million people by 2030, there is a potential consumer base anticipating premium brand price points. Apple market growth is obvious: Apple's iPhone shipments in India rocketed 68% year-over-year in 2023, making it one of Apple's fastest-growing markets in the world.
Retail growth is also part of the picture. The launch of Apple's first flagship stores in Mumbai and Delhi in 2023 has increased brand recognition and direct-to-consumer experiences for Indian consumers.
When discussing Apple's investment in India, it's essential to note that this investment extends far beyond manufacturing and retail. Current reports suggest that Apple will invest billions of dollars to expand its supplier ecosystem while providing training for workers in India.
Additionally, the tech giant has encouraged suppliers to establish themselves in India, furthering job creation and creating an electronics hub that will boost the Indian economy. More than anything, this is a transfer of technology, skills, and the creation of global credibility in electronics manufacturing for India.
India's smartphone market will cross 1 billion users by 2026. Unlike mature markets in the U.S. or Europe, India still has masses of growth potential, especially in the premium segment that Apple plays in.
Consumers are becoming more brand-conscious, and younger generations of consumers are open to spending on long-lasting and high-performance devices. Apple views India not just as an opportunity to manufacture but also as an important sales market that will develop into a competitor to its U.S. and Europe markets.
Also Read: iPhone 17 Price in India Likely to Surge Amid Apple Price Hike
Apple's role in the growth of India is not an accident; it is a strategic move with a long-term journey in mind. From Apple's manufacturing in India to now entering and disrupting the oversaturated and massive Indian smartphone market, they are laying the groundwork for a long-term presence.
The long-term focus is clear. By going all-in on India, Apple's products and production are diversifying, and they are gaining the loyalty of millions of customers. In many ways, India is not a new market for Apple; it is the next frontier.
