The Far East has been a major profit center for Apple (AAPL) over the years and will continue to do so – even as the needle moves away from one regional power to another.
That’s the scenario as Apple announced that it had manufactured $7 billion worth of iPhones in India during the last year. The India market boost is apparently by design, as Apple has hinted it's looking to expand its Asian market beyond China.
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The iPhone boost means Apple manufactures about 7% of its global iPhones in India. That’s a significant rise from 2021, when only 1% of iPhones were made in the Far East giant.
There’s definitely money to be made in India, as the country’s premium smartphone market has doubled in value in recent years, from 3.1% in 2019 to 6% in 2022, according to Canalys.
The heightened manufacturing activity comes at a time when Apple is making a big move in India. On April 10, the company announced it planned on opening its first retail store in Mumbai, India, on April 18. A new store in Delhi is scheduled for an April 20 opening.
“Hello Mumbai,” Apple stated on its website and on social media touting the new retail outlet. “We are getting ready to welcome you aboard our first store in India. And raring to see where your creativity takes you at Apple BKC.” The store is expected to be located in the Jio World Drive Mall, near Mumbai’s financial district. The mall is owned by local real estate magnate Mukesh Ambani and Reliance Industries.
Apple is looking for a Far East insurance policy if its massive Chinese product partnerships fray from geopolitical differences between the U.S. and China.
Toss in a weakening global economy, ongoing supply chain issues with Foxconn, Apple’s manufacturing partner in China, and signals from India’s Prime Minister Narendra Modi that the country is wide open for business, it’s apparent that Apple wants to broaden its Asian operations.
“I’m very bullish on India,” Apple CEO Tim Cook stated in a February earnings call, citing “double-digit” growth in Apple iPhone users in India.
