Apple Inc assembled US$22 billion worth of iPhones in India in the 12 months ended last month, increasing production by nearly 60 percent over the previous year in a sign of continued diversification away from China.
The Cupertino, California-headquartered company now makes 20 percent, or one in five, of its prized iPhones in the South Asian country, people familiar with the matter said.
The dollar figure represents the devices’ estimated factory gate value, rather than the marked-up retail price.
Photo: Reuters
The ramp-up suggests the iPhone maker and its suppliers are accelerating a pivot to India from China. The bulk of India-made iPhones are assembled at Foxconn Technology Group’s (富士康) factory in southern India. Tata Group’s electronics manufacturing arm, which bought Wistron Corp (緯創) and controls Pegatron Corp’s (和碩) operations, is also a key supplier.
Of the total India production, Apple exported 1.5 trillion rupees (US$17.42 billion) in iPhones from the region in the fiscal year through last month, Indian Minister of Railways, Information and Broadcasting, and Electronics and Information Technology Ashwini Vaishnaw said on Tuesday last week.
Shipments of iPhones from India to the US accelerated after US President Donald Trump announced plans for “reciprocal” tariffs in February, the people said.
Apple’s average India production and exports surged all through the fiscal year to last month.
The Trump administration late on Friday exempted electronics goods including smartphones and computers from its reciprocal tariffs. That is good news for companies such as Apple and Nvidia Corp, although the reprieve does not appear to extend to Trump’s separate 20 percent duty on China, applied to pressure Beijing to crack down on fentanyl.
That also means iPhones made in India would not attract any duties as of now. Barring the exceptions made on Friday, Trump’s cumulative levies on China remain at 145 percent, and would likely force companies such as Apple to intensify their supply chain shift.
However, with nearly 200 suppliers and an overwhelming reliance on China, moves to other countries could take years to play out. Despite Trump’s ambition to have iPhones made in the US, Apple is unlikely to move production there any time soon due to factors including a shortage of facilities and labor needed to produce the devices.
Apple now assembles its entire iPhone range in India, including the more expensive titanium Pro models. Its manufacturing success in the world’s most populous nation is also helped by state subsidies tied to Indian Prime Minister Narendra Modi’s ambition to turn the country into a manufacturing hub.
Modi is also seeking to widen electronics component manufacturing with US$2.7 billion in new financial incentives, and is focused on advancing its semiconductor ambitions.
Apple has a nearly 8 percent market share in India’s smartphone market, where its sales — a bulk of those from iPhones — reached almost US$8 billion in fiscal 2024.
After several years flying high as Asia’s best Nvidia Corp proxy, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is increasingly vying with other artificial intelligence (AI) stocks for investor attention. Stock traders are chasing a wider array of beneficiaries as mainstream usage of AI creates demand for hardware beyond the most-advanced chips TSMC makes for Nvidia. Subthemes from the deepening memory crunch to advances in robotics are also luring bids. At the same time, investment caps on single stocks are pushing funds to diversify, while retail investors long familiar with TSMC through its US depositary receipts are being offered a broader set of
UNDER MICROSCOPE: Taiwan detained three people who allegedly conspired to buy servers in Taiwan and export them using fraudulent documentation, prosecutors said Nvidia Corp chief executive officer Jensen Huang (黃仁勳) on Saturday urged Super Micro Computer Inc to tighten up on compliance after Taiwan detained three people this week for allegedly making fraudulent declarations about artificial intelligence (AI) servers made by its US partner. The development marked the nation’s first crackdown on semiconductor smuggling, which grew after the US slapped restrictions on exports of high-end chips such as Nvidia AI accelerators to China. Nvidia is “rigorous” in explaining regulations to all of its partners, Huang told reporters after arriving in Taipei. “Ultimately Super Micro has to run their own company,” he said in response to
TECH RELIANCE: Growth is increasingly reflecting an unequal K-shaped distribution, where technology sectors outperform and other industries struggle, an expert said Standard Chartered Bank has significantly raised its forecast for Taiwan’s economic growth to 9.5 percent this year, up from 7.6 percent previously, citing surging artificial intelligence (AI) demand driving exports, semiconductor production and investment. The upgrade reflects a sustained AI supercycle that continues to fuel demand for advanced chips and technology infrastructure, which form the backbone of Taiwan’s exports, the bank said in a report this week. “We raise our 2026 growth forecast to reflect a much stronger-than-expected first-quarter GDP figure,” Standard Chartered senior economist for greater China and Asia Tommy Wu (胡東安) said in the report. Driven largely by a 35.3 percent
Two of Taiwan’s international carriers, Starlux Airlines Co (星宇航空) and EVA Airways Corp (長榮航空), have retained the five-star airline rating awarded by international airline review organization Skytrax. Starlux was awarded the distinction for a second consecutive year, while EVA Air received it for the 11th straight year, Skytrax said in statements released yesterday and on Thursday last week, respectively. The five-star rating is considered one of the airline industry's highest honors and is awarded following professional audits of airline product and frontline service standards, Skytrax said. The ratings are based on in-depth assessments using unified global quality standards rather than customer review scores
RSS