As per Bloomberg News, Apple’s iPhone exports from India have increased in last five months. It crossed $1 billion since April 2022, reflecting the tech giant’s growing bet on the south Asian nation amid India’s push for local manufacturing.  The outbound shipments of India made iPhone to European countries and the middle east are all set tp reach near about $2.5 billion in the next 12 months through march 2023, almost double if compared to the year through march 2022. The devices exported from India from April to August 2022 comprises Apple iPhone 11, 12 and 13 models. Also, the export of Apple iPhone 14 will be started soon. This is a great achievement for Indian market because it is becoming an electronic exporter and an alternative to China as a factory in the world.

This news of increase in export is a great news for boosting PM Modi’s push for local manufacturing and benefits.   

Some benefits of local manufacturing of iPhone are  

  • It helps India become a smartphone export hub for countries including Germany, Russia, the UK, France, Italy, the Middle East and Japan1.
  • It supports Prime Minister Narendra Modi’s plan to make India an alternative to China as factory to the world and attract foreign investment2.
  • It reduces Apple’s dependence on China for iPhone production and diversifies its supply chain amid geopolitical tensions and Covid-related disruptions3.
  • It enables Apple to offer lower prices and better services to its customers in India, which is the second biggest smartphone market in the world.

How many iPhones are made in India?

According to TechHQ, the Indian government has been encouraging smartphone companies to produce in India, pushing the number of “Made in India” phones higher. And according to News Arena India, exports of Made in India iPhones increased by 4 times in last one year as ₹40,000 crore iPhones were exported in last one year. Latest data shows India now accounts for 5% of total iPhone production and in 2020 the number was less than 1%. And a report by Tekdeeps shows that, the number of iPhones manufactured in India increased by 65 percent last year compared to the previous year, and a 162 percent increase in value was measured.

How does this impact China’s economy?

  • It reduces China’s share of global iPhone production and exports, which could affect its revenues and employment.
  • It increases the competition for China from India as a manufacturing hub for smartphones and other electronics.
  • It exposes China to more geopolitical risks and trade tensions with the US and other countries that are seeking to reduce their dependence on Chinese supply chains.
  • It challenges China’s dominance in the high-tech sector and its ambitions to become a leader in innovation and quality.