A $40-bn alternative for India as Apple dumps China for iPhone manufacturing – Firstpost

As Apple plans to supply the vast majority of its iPhones for the US market from Indian manufacturing within the June quarter, consultants advised Moneycontrol that Foxconn and Tata Electronics crops in India are well-equipped to fulfill demand value between $12 and $14 billion.

In addition they anticipate that if this tempo continues past the June quarter, iPhone manufacturing in India would attain about $40 billion in worth in FY26, with roughly 80% of that quantity seemingly going to the US market.

“Over 11 million iPhones have been bought within the April-June quarter of 2024 with a median promoting worth (ASP) of $1,100, which suggests the worth is $12.1 billion. Whereas this stays Apple’s weakest quarter usually, the demand by way of worth will probably be greater than $12 billion,” an analyst advised Moneycontrol on the situation of anonymity.

With $40 billion in manufacturing, Apple would have the ability to fulfil 80 p.c of its US demand and 100% of its home demand, which is rising each quarter.

“The April-June quarter can be on observe to be a bumper quarter for Apple in India,” stated one other analyst, who requested to stay nameless.

Apple CEO Tim Cook dinner said that the majority of iPhones bought within the US through the June quarter will probably be sourced from India, whereas virtually all iPads, MacBooks, Apple Watches, and AirPods bought within the US will probably be manufactured in Vietnam.

Apple intends to relocate a serious chunk of India-made iPhones—beforehand headed for European nations, the UK, Turkey, and Japan—to america within the June quarter.  In accordance with business sources and analysts, Apple is rising home manufacturing to mitigate the results of escalating US tariffs.

Analysts and business consultants predict that Apple might want to enhance the general worth of iPhone manufacturing in India from $22 billion to perform its goals. This entails roughly rising exports from $17.5 billion to $32–35 billion, whereas the native market is anticipated to contribute $5–8 billion.

Apple produced round 40-45 million iPhones in India in 2024, accounting for 18-20% of its worldwide output. Round 14-15 million have been shipped to america, 13 million to different worldwide markets, and roughly 12 million have been bought solely in India.

In accordance with business consultants, Apple has began sending India-made iPhones to nations such because the Netherlands, Italy, the Czech Republic, Japan, Turkey, the UK, and the United Arab Emirates.

“Apple will seemingly reroute India-made iPhones meant for these markets to the US for the June quarter by tweaking the fashions,” a supply stated.

Apple’s companions have already elevated the capability of current Indian crops and established extra models.

Tata Electronics’ new iPhone plant in Hosur has commenced operations, producing older-generation iPhones. Foxconn’s new Bengaluru plant, the second-largest outdoors China, is being constructed with a $2.8 billion funding and can shortly start iPhone manufacturing.  It would have a major impression on India’s export development.

In accordance with ICEA statistics, iPhones value Rs 48,000 crore ($480 million) have been exported within the March quarter, in comparison with Rs 28,500 crore ($285 million) in the identical interval final 12 months.

Typically, the FOB worth is the price of manufacturing and transporting the iPhone till it’s prepared for export, whereas the ultimate retail worth, which might be many occasions greater, is the fee to the top consumer.

The FOB worth for an iPhone (together with meeting and parts) would possibly vary from $300 to $500, relying on the mannequin and space. Nonetheless, the ultimate retail worth would possibly vary from $700 to $1,500, relying on the mannequin and market, representing a markup of 2-3 occasions the FOB worth.

In accordance with S&P International Market Intelligence, 98% of Apple’s iPhone exports from India in March have been certain for america, amounting to round 3.1 million handsets, a major enhance from 84% in February.  Nearly all of March manufacturing was dealt with by Foxconn.