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In a notable development underscoring its strategic shift away from reliance on Chinese manufacturing, Apple reportedly churned out a staggering $14 billion worth of iPhones in India during the previous fiscal year. This move, as per a Bloomberg report, signifies the tech giant's ongoing efforts to diversify its production beyond China's borders.
As diplomatic tensions between the U.S. and China persist, Apple has been actively broadening its supply chain footprint, with Vietnam and India emerging as key manufacturing hubs. This diversification marks a significant departure from Apple's historical dependence on Chinese manufacturing facilities.
According to the report, Apple now manufactures approximately 14% of its iPhones in India, doubling its output from the previous year. Notably, Pegatron and Foxconn accounted for 17% and 67% of this production, respectively, with Wistron contributing the remainder.
The momentum towards Indian production received a boost in June 2023 when Apple CEO Tim Cook and other top executives engaged with India's Prime Minister Narendra Modi, emphasizing the country's strategic importance. The company's commitment to the Indian market was further underscored by the opening of its maiden retail stores in the region last year.
While China continues to be a vital market for Apple, recent sales figures have shown a decline, with a Counterpoint Research report revealing a 24% drop in iPhone sales during the initial six weeks of 2024. This downturn is attributed to intensified competition from domestic smartphone rivals such as Huawei.
Despite mounting speculation and inquiries, Apple refrained from providing an official comment on the matter.
Apple's aggressive expansion of iPhone manufacturing in India signifies a pivotal strategic maneuver amidst evolving global dynamics. As geopolitical uncertainties persist and market landscapes undergo transformation, Apple's move underscores a proactive approach to safeguarding its production capabilities and market presence.
Despite the industry's lucrative prospects, it has not been without its challenges. Chinese authorities have implemented regulations to curb excessive gaming, including limiting playtime for minors and imposing restrictions on in-game purchases. However, recent developments suggest a shift in approach, signaling a more nuanced stance toward gaming regulation in China.
