Apple plans to produce five times more iPhones in India over the next 5 years

Apple has been shifting the production of iPhones from China to India to reduce its dependence on China as the sole source for iPhones. The tech giant now has plans to further increase manufacturing in India.

According to reports from BQ Prime (via Apple Insider), an unnamed government official has disclosed Apple's intentions to expand production in India by more than five times, reaching approximately $40 billion over the next four to five years. In the previous fiscal year, Apple had already exceeded the $7 billion production milestone.

The primary focus of this expanded production will remain on iPhones. However, there are rumors suggesting that Apple might extend its production to include AirPods in India. As of now, there are no indications of plans to manufacture MacBooks and iPads in the country.

The official elaborated, "They don't have any plans to participate in IT hardware PLI. They may come at a later stage but as of now their focus is to scale up existing production levels."

India's contribution of $7 billion to iPhone production in the last fiscal year, while significant, pales in comparison to the global iPhone sales figure of $191 billion for the year ending September 2022.

Apple has now emerged as the largest mobile phone exporter from India. According to industry sources, the iPhone 15 series recorded a remarkable 100% growth in sales compared to the iPhone 14 on its launch day. Furthermore, the company has made “made-in-India” iPhones available on the same day as their global release.

It is anticipated that by 2025, global iPhone sales originating from India could increase from the current 3.6% to over 5%, with a long-term goal of achieving 25% of global production within the country.

Previously, 98% of iPhones were made in China, but Apple is now diversifying. If the US imposes import taxes on Chinese-made devices, as it did a few years ago, or if other US-China issues arise, Apple apparently wants to be prepared and secure its supply chain.