NEW DELHI (Diya TV) — Tech giant Apple produced iPhones worth a staggering $14 billion in India during the last fiscal year, according to a report from Bloomberg.

The report highlights Apple’s strategic pivot away from over-reliance on China as tensions between the U.S. and China persist. With the aim of expanding its supply chain, Apple has been steadily increasing its production footprint in countries like Vietnam and India. This shift marks a departure from the company’s traditional manufacturing stronghold in China.

Apple’s efforts in India have yielded substantial results, with the country now accounting for approximately 14% of the iPhones manufactured by the company. This figure represents a doubling of production compared to the previous year, reflecting Apple’s growing investment in the Indian market. Pegatron, one of Apple’s key manufacturing partners, assembled around 17% of these iPhones, while Foxconn, a major player in Apple’s supply chain, produced approximately 67%. The remaining portion was manufactured by Wistron.

The surge in iPhone production in India comes on the heels of a high-level meeting between Apple CEO Tim Cook and India’s Prime Minister Narendra Modi at the White House in June 2023. Cook expressed optimism about India’s potential as a lucrative market for Apple, underscoring the country’s importance in the company’s global strategy. Apple’s decision to open its first retail stores in India last year further underscores its commitment to expanding its presence in the country.

Despite its efforts to diversify, China remains a crucial market for Apple. However, recent reports indicate a decline in iPhone sales in China, with a Counterpoint Research report revealing a 24% drop in sales during the first six weeks of 2024. Intense competition from local smartphone vendors like Huawei poses a significant challenge to Apple’s market dominance in China.

In response to geopolitical tensions, Apple continues to explore avenues to reduce its dependence on China for manufacturing. Reuters reported on Monday that Pegatron is in advanced discussions to transfer control of its sole iPhone manufacturing facility in India to the Tata Group, a move that underscores Apple’s ongoing efforts to strengthen its manufacturing ecosystem in India.