According to a report published in Reuters, the Apple iPhone exports from India have crossed $1 billion in the five months since April, reflecting the tech giants’ strong hold on South Asian regions. Citing the sources, the report mentioned that the outbound shipments of India-made iPhones, mainly to Europe and the Middle East, are set to reach $2.5bn in the 12 months through March 2023, almost double when compared to the year through March 2022.
iPhone Exports from India to Increase under Government’s Plan
The Modi-led government has initiated a plan to make the country an alternative to China – the factory to the whole world. However, India is still far behind China. About 3 million iPhones were made in India last year, compared with 230 million in China. The devices exported from India from April to August this year comprise iPhone 11, 12, and 13 models, and exports of the new 14 line will begin soon, reads the report.
India is also devising plans to boost the financial incentives for tablet and laptop makers in hopes of convincing Apple to start making MacBooks and iPads locally and attracting other international brands. Narendra Singh, an analyst at tech researcher, said, “The healthy growth in Apple’s manufacturing scale and export shows India is gradually assuming an important position in the company’s China plus one strategy and for India, this a big sign of the success of its financial incentives scheme.”
Political Tensions Between US and China
The rising tensions between Washington and Beijing have made countries like India, Mexico, and Vietnam the center point of contract manufacturers and suppliers to American brands. They also seek to diversify production away from China amid Covid-related lockdowns. But, moving out of China won’t be easy as it would take about eight years to move just 10% of Apple’s production capacity out of China, a Bloomberg Intelligence analysis estimated.
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