This achievement by Apple goes beyond the targets set under the production-linked incentive (PLI) scheme, which might lead to more incentives for the company’s contract manufacturers.
Mumbai: Apple made iPhones worth more than Rs 1 lakh crore in India last year, increasing production significantly compared to the previous year. Out of this, iPhones worth Rs 65,000 crore, produced in India, were sent to other countries between January and December, reported The Economic Times.
An official quoted in the report said the Rs 1 lakh crore value is the price when the iPhones leave the factory (Freight on board or FOB), and the actual market value could be between Rs 1.5 lakh crore and Rs 1.7 lakh crore, depending on taxes and dealer margins in different countries.
The production-linked incentive is applicable to the value of the device when it leaves the factory. This success is a positive outcome for the government, which aims to shift supply chains away from China.
Apple’s India ops gain momentum
This shows that Apple has fulfilled its promise to make India a significant hub for iPhone manufacturing, expanding its supply chain in the country. The company is possibly the largest phone manufacturer in India by value, increasing its market share to 6 per cent in FY23 from 2 per cent in FY18, according to Counterpoint data cited in the ET report.
While Samsung’s market share declined, Apple’s India business has grown significantly. Apple is building a network of Indian suppliers, including a Tata Group unit, to support the move of production from China.
In 2023, Apple’s production record comes just before the visit of US Trade Representative Katherine Tai to participate in the Indo-US Trade Policy Forum in Delhi.
Apple’s three contract manufacturers in India are Foxconn, Pegatron, and Tata-owned Wistron. All of them have been approved to receive incentives under the PLI scheme. Foxconn is the leading manufacturer, contributing 68 per cent of total production, followed by Pegatron with 18 per cent and Wistron at 14 per cent.
In 2023, Apple produced and exported five iPhone models (11, 12, 13, 14, and 15). The majority of iPhones manufactured in India are exported to the US, Europe, and West Asia. Around 65 per cent of them are sent to these regions, the report added.
In FY23, Apple became the first standalone brand to surpass the $5 billion export mark from India, driven by iPhone exports. India’s total mobile phone exports reached Rs 90,000 crore in FY23, making electronics the fifth-largest export category in the country.