MUMBAI:
Apple’s fiscal year 2025 (FY25) has started with a remarkable surge in iPhone exports from India. Official data reveals that exports of iPhones produced in the country nearly doubled in April, reaching $1.1 billion (Rs 9,000 crore) compared to $580 million a year ago, reported The Economic Times (ET). Analysts note that April typically witnesses subdued export activity globally due to the absence of major festive sales events.
Buoyed by this surge, experts anticipate the tech behemoth will breach the Rs 1 trillion export milestone in FY25, solidifying India as its second-largest manufacturing hub for iPhones outside China. Currently, iPhones are exclusively manufactured in India and China, with experts projecting that 14-15 per cent of production has already shifted to India, a figure expected to climb to 26 per cent by 2026.
Apple predominantly exports a bulk of its total production from India. In FY24, the company’s overall production in India soared to $14 billion (Rs 1.2 trillion), with exports surpassing $10 billion (Rs 85,000 crore). These figures represent the highest achieved by any company in India for a single financial year.
To be sure, the export numbers take into account the freight on board (FOB) value at which the device leaves the factory. Retail prices are about 60 per cent higher.
Apple operates through three contract manufacturers in India—Foxconn, Wistron, and Pegatron—all beneficiaries of the smartphone production-linked incentive (PLI) scheme.
Foxconn leads Apple’s export charge
Taiwan-based Foxconn, the world’s largest contract manufacturer, emerges as the primary exporter of India-made iPhones, accounting for over 70 per cent of shipments, followed by Wistron (27 per cent), with Pegatron contributing the remainder. Notably, Wistron is now under the ownership of the Tata Group, while Pegatron is in discussions with the Indian conglomerate for a majority stake sale.
With the momentum witnessed in April, officials anticipate Apple surpassing targets in the fourth year (FY25) of the PLI scheme.
Apple’s contract manufacturers stand out among the few meeting PLI targets, with Samsung and India’s homebred Dixon Technologies consistently meeting goals since the scheme’s inception in FY21. However, industry executives highlight that most other PLI beneficiaries are struggling to meet targets.
Apple’s local market expansion in India
While a majority of iPhones manufactured in India are destined for exports, the domestic market is also experiencing robust growth for Apple, surging over 38 per cent Year-on-Year (YoY).
Leveraging its expanding local manufacturing operations, Apple is actively pursuing a double-digit smartphone market share in India, aiming to elevate it from around 7 per cent in FY24.
