Cupertino-based Apple has begun to profit from its growth to India.

Between April and December 2022, Apple exported greater than $2.5 billion value of iPhone handsets from the nation, Bloomberg reported yesterday (Jan. 9). This was practically double its shipments within the earlier fiscal 12 months. The firm’s primary producers, Foxconn Technology Group and Wistron Corp, have exported over $1 billion value of iPhone handsets every from India.

Apple’s handsets are manufactured in two primary amenities in India in Sriperumbudur and Hosur, each in the southern state of Tamil Nadu.

This enhance within the firm’s exports now highlights Apple’s shift away from China, particularly after the turmoil at Foxconn’s main plant there disrupted provides in November. The Zhengzhou unit, also called iPhone metropolis, makes the high-end 14 Pro and Pro Max fashions.

Apple is frightened over the potential for a worldwide recession, alongside China’s zero-covid policy. These elements have compelled Apple, together with different world producers, to search for various manufacturing bases.

India’s business-friendly insurance policies for Apple

Apple started assembling iPhones in India in 2017, beginning with its least costly mannequin, the iPhone SE.

In 2020, it started manufacturing the handsets domestically after the Indian authorities launched its production-linked incentive (PLI) scheme. Foxconn alone has benefited by as much as $44 million within the first 12 months of PLI, in accordance with Bloomberg. In the longer run, the scheme is predicted to assist India emerge as a producing and export hub.

“Led by Foxconn and Pegatron, companies have already invested in factories, production lines, relatively advanced manufacturing processes, and personnel training in India,” Counterpoint Research analysts Ivan Lam and Shenghao Bai wrote in a notice, accessed by The Times of India.

Apple is now making ready to open its first physical retail store within the nation. Meanwhile, India can also be seeking to manufacture MacBooks and iPads.

Apple’s gradual shift to India comes at a time when China is seeing its workforce shrink, in accordance with World Bank information. India’s highly-trained labour is comparatively inexpensive than these of China and the US.

Yet, transferring out of China will not be simple. Bloomberg Intelligence estimates that it could take about eight years for Apple to shift 10% of its manufacturing capability out of that nation, contemplating 98% of the iPhones are made in China.