A new report has it that Apple has exported over US$2.5 billion of iPhones from India within the months of April and December. This number is about twice its previous fiscal year’s total, which showed the company’s accelerating shift from China due to the geopolitical tension rising between the latter and the United States.

According to people familiar with the matter, both Foxconn and Wistron have each shipped over US$1 billion of Apple’s devices overseas in the first nine months of the fiscal year ending in March of 2023.

Another contractor for Apple is Pegatron which is said to be on track to move about US$500 million of the gadgets overseas by the end of the month of January.

One of the many reasons why Apple is moving its manufacturing overseas is due to chaotic situations at Foxconn’s main plant in Zhengzhou.

That compounded a broader problem with evaporating demand for electronics as consumers weigh the risks of a global recession.

The assembling of smartphones in India started last year which makes a significant break from its practice of reserving much of that for giant Chinese factories run by Foxconn.

Indian Prime Minister, Narendra Modi believes the country would be an alternative to China as a factory to the world.

Other things that have affected manufacturing in China include the country’s zero-COVID policies and an episode of violence at the Zhengzhou plant which is normally called the iPhone City.

On the other hand, India with its huge workforce as well as the government’s support is now seen as a place for mass manufacturing with Foxconn, Apple’s largest supplier, now building facilities in the country in anticipation of a need to extend its geographic range.

Another thing is that the Indian government is now offering some incentives in order to further drive the country’s electronics manufacturing.

So far, Foxconn has won about US$33 million (IN₹3.6 billion) of benefits in the first year of the production-linked incentives schemes, while Wistron’s claims are currently being processed.

Representatives for Apple, Foxconn, and Wistron didn’t respond to emails seeking comment. A Pegatron spokesperson declined to comment.

Production of iPhones is currently being made at plants in southern India even though this is just the beginning in the country.

Since the year 2021, about 3 million devices were made in India unlike China’s 230 million based on a Bloomberg Intelligence estimate.

Apple’s newest iPhone 14 was manufactured by Foxconn in India a couple of months ago after a smooth production rollout which reduced the lag between the country and China from months to weeks.

Other Apple’s Taiwanese partners are currently assembling devices ranging from the older iPhone 11 series to the iPhone 14 series in India.

Although moving out of China won’t be easy due to the amount of investment Apple has made in China. In fact, analysts believe it could take about 8 years just to move 10% of Apple’s production capacity out of China where roughly 98% of its iPhones are currently being made.

India tracks the production and exports of all smartphone makers who enjoy financial incentives as part of Modi’s push.

Apart from smartphone manufacturing, India is also planning to boost financial incentives for the manufacturing of tablets and laptops. It also hopes to encourage the production of earbuds from both foreign and local brands.

Apple will also reportedly open its first official retail store in India this year after meeting certain imposed criteria on foreign retailers by the country’s authorities.