14 percent of 2023’s iPhones “Made in India” Signalling Apple’s Major Production Shift

Highlights

• 14 percent of iPhones shipped in 2023 were manufactured in India.
• Foxconn, the primary manufacturer, produced 80 percent of these India-assembled iPhones.
• Luxshare is gradually moving its production to India.
• Apple aims to begin iPhone 17’s initial production in India by late 2024.

In an unprecedented shift in Apple’s global production chain, renowned analyst Ming-Chi Kuo disclosed that a staggering 14 percent of all iPhone units shipped in 2023 bore the “Made in India” tag.

Such an incline indicates Apple’s successful stride towards diversifying its manufacturing hubs.

A Dive into Production Stats

Breaking down the numbers, Foxconn, a chief player in the tech manufacturing sector, accounted for a whopping 80 percent of these Indian-assembled iPhones.

But with the changing tides, Kuo anticipates significant production declines for Foxconn in Zhengzhou and Taiyuan by 2024, foreseeing dips of 35-45 percent and 75-85 percent, respectively.

Interestingly, Luxshare, another key manufacturer serving Apple, has been shifting parts of its production arsenal to India, further emphasizing the subcontinent’s growing relevance.

Beyond China: Apple’s Global Shift

Historically, Apple’s heavy dependence on China for its iPhone assembly met hurdles, especially during the COVID-19 pandemic, where several manufacturing facilities faced temporary shutdowns.

This pause reportedly drained Apple’s coffers by a billion dollars weekly.
Moreover, geopolitical friction between the US and China added another layer of complexity for Apple’s Chinese suppliers.

Diversification then became the need of the hour.

While Apple has spread its wings to Brazil and Vietnam in recent years, India’s potential as a long-term global manufacturing contender seems undeniable.

Apple’s Affinity for India

A look back reveals Apple’s budding relationship with India began nearly half a decade ago when it initiated iPhone assembly.

The tech giant’s rapport with Indian consumers also seems to be flourishing.

A report from Counterpoint highlighted a record-breaking quarter for Apple in India, with shipments surpassing 2.5 million units between July and September.

What’s Next for Apple in India?

Ming-Chi Kuo dropped another significant forecast: the initiation of the standard iPhone 17’s preliminary production is slated for India by the latter half of 2024.

If Kuo’s prediction holds, this would be Apple’s maiden venture of kickstarting the development of a new iPhone model outside China.

FAQs

What percentage of iPhones were made in India in 2023?

In 2023, 14% of all iPhones shipped globally were produced in India, marking a significant increase in the company’s manufacturing diversification.

Which major tech manufacturer is responsible for most of the Indian iPhone production?

Foxconn, a key player in tech manufacturing, is behind 80% of the iPhone production in India.

How has the COVID-19 pandemic affected Apple’s production?

The pandemic caused many of Apple’s manufacturing units in China to halt operations, resulting in significant financial impacts and urging Apple to diversify its production base.

When is Apple planning to start the production of iPhone 17 in India?

As per analyst Ming-Chi Kuo, Apple aims to commence the preliminary production of the standard iPhone 17 in India by the second half of 2024.

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