Apple Inc. has significantly increased its iPhone exports from India, totaling nearly $6 billion from April to September, marking a one-third increase in value compared to the same period last year. This growth underscores Apple’s accelerating push to reduce its manufacturing reliance on China amidst ongoing geopolitical tensions between Beijing and Washington.

The surge in exports positions Apple to reach around $10 billion in annual iPhone exports from India for fiscal 2024. The tech giant has expanded its India-based manufacturing operations rapidly, driven by a combination of government subsidies, a skilled local workforce, and India’s growing technological infrastructure. India has become a critical component of Apple’s strategy to diversify its supply chain away from China, where economic and political risks have increasingly posed challenges.

Three primary suppliers Taiwan’s Foxconn Technology Group, Pegatron Corp., and Tata Electronics are responsible for iPhone assembly in India. Foxconn’s local unit near Chennai leads in exports, producing half of India’s iPhone shipments. Tata Group, which entered Apple’s assembly ecosystem after acquiring Wistron Corp.’s factory in Karnataka, exported approximately $1.7 billion worth of iPhones during the same period.

iPhone production has also contributed significantly to India’s export profile. According to trade ministry data, smartphones have emerged as India’s top export category to the United States, with exports reaching $2.88 billion in the first five months of the current fiscal year. In comparison, India’s total smartphone exports to the U.S. in 2018 amounted to a mere $5.2 million, highlighting the rapid rise in Apple’s manufacturing and export scale within India.

Apple’s growth in India, however, contrasts with the broader market, where the brand currently holds just under 7% of the local smartphone segment, which is dominated by Chinese brands like Xiaomi, Oppo, and Vivo. Despite this, Apple is making considerable investments in India, betting on rising middle-class incomes, the availability of installment payment plans, and an expanding appetite for premium tech products. Analysts forecast that Apple’s India revenue could reach $33 billion by 2030, up from $8 billion in the fiscal year ending March 2024.

Prime Minister Narendra Modi’s administration has supported Apple’s Indian expansion with subsidies, facilitating the local assembly of high-end models like the iPhone 16 Pro and Pro Max, which feature advanced cameras and titanium frames. Apple has also bolstered its retail presence, opening new flagship stores in Mumbai and New Delhi last year, with additional stores planned in Bangalore and Pune.

While Apple’s growing investment in India reflects a significant strategic shift, China remains integral to its global operations, providing both a major production base and a substantial consumer market. Apple assembled $14 billion worth of iPhones in India in the fiscal year ending March 2024, nearly doubling its output from the prior year. Of that, $10 billion worth of devices were exported, showcasing India’s role as a burgeoning iPhone production hub.

India’s rise in Apple’s production and export strategy reflects a long-term shift, as Apple aims to mitigate risk by diversifying its manufacturing base beyond China. However, China’s market size and production scale mean India is unlikely to replace it as Apple’s primary hub soon. Nonetheless, Apple’s escalating investments in India mark a notable shift as it seeks to balance its operations across multiple regions.