Dinesh Ramachandran Apple’s deepening ties with Indian developers and manufacturers underscore a strategic pivot from China, positioning India as a cornerstone in Apple’s global supply chain diversification.
Apple’s engagement with India has evolved from a mere manufacturing base to a multifaceted strategic partnership, encompassing app development, hardware production, and talent acquisition. In 2024, Indian developers generated approximately ₹44,447 crore (about $5.31 billion) in revenue through the App Store, with 79% of earnings originating from international users. This success is attributed to Apple’s localized pricing policies and the burgeoning digital transaction ecosystem in India, which have collectively mitigated criticisms regarding app store pricing structures.
Simultaneously, Apple has intensified its manufacturing presence in India. The establishment of a $2.6 billion Foxconn plant in Bengaluru, alongside a new Tata Electronics facility in Tamil Nadu, signifies a strategic shift aimed at reducing reliance on China amidst escalating U.S.-China trade tensions. India now accounts for approximately 20% of global iPhone production, with plans to increase this share by 2026.
This diversification strategy is further complemented by Apple’s collaboration with over 40 Indian firms, including Dixon Technologies, Amber Electronics, and Wipro, to bolster its component supply chain. These partnerships are crucial as Chinese suppliers face challenges in India due to regulatory and geopolitical factors.
Apple’s comprehensive approach in India—spanning app development, manufacturing, and supply chain diversification—serves as a blueprint for other global companies seeking to mitigate geopolitical risks and capitalize on emerging markets.As the global tech landscape continues to shift, India’s role in Apple’s strategy underscores the nation’s growing significance in the global supply chain.
