November 20, 2023
Approximately 70% of iPhones produced in India are exported
Exports from India reached INR 40,000 crore (US$ 5 billion) in the April to October period of the current fiscal year
Apple's emphasis on India as a manufacturing and export hub is reflected in its 185% year-on-year growth in exports during the first seven months of the fiscal year
The recent agreement between Tata Group and Wistron marks a significant development, making Tata the first Indian entity to join Apple's supply chain
Apple aims to achieve a production milestone of nearly INR 1 trillion worth of iPhones in India by the end of the fiscal year in March 2024, signalling a significant expansion in manufacturing capabilities.
Media reports said that Apple surpassed INR 60,000 crore in production during the first seven months of the fiscal year. If Apple falls short of the INR 1 trillion target this fiscal year, reports suggest that the milestone will likely be reached in the first quarter of the fiscal year 2025.
Approximately 70% of iPhones produced in India are exported, with exports reaching INR 40,000 crore (US$ 5 billion) in the April to October period of the current fiscal year, surpassing the total exports of the previous fiscal year.
Apple’s emphasis on India as a manufacturing and export hub is reflected in its 185% year-on-year export growth during the first seven months of the fiscal year. This strategy aligns with Apple’s long-term vision for India, making it a crucial market and manufacturing centre.
Apple’s production in India is carried out by manufacturing partners, including Taiwan’s Foxconn and Pegatron in Tamil Nadu and Wistron (now owned by the Tata Group) in Karnataka, under the production-linked incentive (PLI) scheme for smartphone manufacturing. The PLI beneficiaries, including Apple, submit production, export, investment, and job data to the government.
The recent agreement between Tata Group and Wistron marks a significant development, making Tata the first Indian entity to join Apple’s supply chain as an iPhone manufacturer. Apple’s sustained focus on India, increased manufacturing capacity, and rising premiumisation in the domestic market position it for substantial growth, with expectations to sell a record 9-10 million iPhones in India in 2024.
As the PLI scheme approaches its halfway mark, India is emerging as a major smartphone manufacturing base, with Apple and Samsung contributing to a record INR 90,000 crore smartphone exports in FY23. Apple CEO Tim Cook’s recent visit to India underscores its commitment to the Indian market, emphasising its potential as “an incredibly exciting market” and a “major focus” for Apple.
Source: Economic Times