There are various opinions on why India frequently cracks down on Chinese mobile phones. However, recent Indian export data may provide an answer. India's mobile phone export data shows that two-thirds of exported mobile phones are Apple products, and Chinese mobile phones' export support for Made in India is quite limited. Therefore, it is not surprising that India is suppressing Chinese mobile phones.

India's fiscal year 2024 data shows that the country's mobile phone exports reached $15.5 billion, a record high. Among them, the export value of Apple mobile phones reached $10 billion, indicating that Apple contributed two-thirds of India's mobile phone exports.

Apple's high export share of Indian mobile phones is mainly due to the higher value of iPhones. The average price of iPhones is almost three times that of Chinese mobile phones, which naturally has a greater impact on India's export value.

The high export share of iPhones in India brings many benefits to Made in India. Firstly, it helps improve India's trade deficit, which has been significantly reduced according to India's fiscal year 2024 data, with Apple playing a crucial role.

Another significant support Apple provides to Made in India is driving the development of India's mobile phone industry chain. Apple is vigorously promoting localization of manufacturing in India and even requiring mobile phone industry chain companies in mainland China and Taiwan, China, to set up factories in India, which is of greater significance to Made in India.

In contrast, Chinese mobile phones provide limited support to Made in India. The average price of Chinese mobile phones is much lower than that of Apple, which means that even if Chinese mobile phones are manufactured and re-exported from India, their contribution to India's exports is relatively limited.

Secondly, due to geopolitical factors, India's attitude towards Chinese mobile phones is well-known, and Chinese mobile phone manufacturers are obviously aware of this. Currently, Chinese mobile phones are mainly assembled in India, while mobile phone accessories are transported from mainland China.

This approach is also influenced by India's reputation as a graveyard for foreign investment. Over the years, many companies, including American ones, have suffered huge fines in India. Ford invested over $2 billion in India for more than a decade but eventually withdrew due to consecutive losses. Chinese mobile phones have also faced such unfair treatment in India in recent years, so they naturally do not promote the relocation of the industry chain to India.

Conversely, India's dissatisfaction with Chinese mobile phones has led to repeated measures against them, which has further fueled Chinese mobile phone manufacturers' concerns and caution towards manufacturing in India.

Apple's significant contribution to India's mobile phone export growth is closely related to Foxconn. With Wistron acquired by Tata Group in India and Pegatron in negotiations with Tata, Foxconn is now the only major iPhone contract manufacturer left planning to set up a factory in India. Foxconn has also become the only contract manufacturer producing iPhones simultaneously in India and mainland China.

For decades, Foxconn has been the largest exporter in mainland China. As Foxconn's support for Made in India grows, it may become a target of competition between China and India, as it will remain the largest iPhone contract manufacturer for a long time to come.

Considering various factors, Apple has always assigned the largest proportion of iPhone production to Foxconn. In mainland China, even though Apple added BYD as a contract manufacturer this year and gave more orders to Luxshare Precision, this may be due to Wistron almost losing iPhone orders and Pegatron receiving fewer orders, rather than taking away Foxconn's orders.

As such, Foxconn may become a target of competition between China and India. Where does Foxconn have its largest factory? Undoubtedly, it's in mainland China. However, under Apple's requirements, Foxconn is likely to further expand its production capacity in India in the future. Whoever can secure more Foxconn production capacity will gain more Apple orders and exports, making Foxconn a highly sought-after partner in today's export-driven economy.