Apple’s commitment to local manufacturing in India has yielded significant results, with the company exporting ‘India-made’ iPhones worth a staggering Rs 65,000 crore in 2023. Let’s delve into the details and implications of this substantial milestone.
Manufacturing Milestone
Industry data reveals that Apple assembled iPhones worth over Rs 1 lakh crore in India last year, marking a substantial achievement for the tech giant’s local manufacturing efforts. Out of this total value, iPhones worth approximately Rs 65,000 crore were exported to various countries, underlining India’s growing role in Apple’s global supply chain.
Production-Linked Incentive Scheme
Apple’s manufacturing endeavors in India align with the objectives outlined in the production-linked incentive (PLI) scheme, aimed at fostering domestic production and export competitiveness. This initiative has not only bolstered Apple’s manufacturing capabilities but also contributed significantly to India’s mobile phone export landscape.
Surging Mobile Phone Exports
Driven by Apple’s manufacturing surge, India’s mobile phone exports soared to over $9 billion (Rs 75,000 crore) from April to November in the current fiscal year. With the momentum set to continue, the country is poised to surpass $15 billion (Rs 1,24,000 crore) in mobile phone exports in FY24, reflecting a remarkable 35% growth over the previous fiscal year.
Revenue Growth and Market Share
Apple’s revenue in India witnessed a robust expansion, reaching nearly Rs 50,000 crore in FY23. The company’s sales surged by 48%, totaling Rs 49,321 crore, while net profit soared by 76% to Rs 2,229 crore, marking the fastest growth in net profit for Apple in India over the past five years. Additionally, propelled by domestic manufacturing, Apple iPhones are projected to capture approximately 7% of the smartphone market share in India, traditionally dominated by Android devices.
Manufacturing Ambitions
Looking ahead, Apple aims to scale up its manufacturing operations in India, targeting the production of more than 50 million iPhones annually within the next two to three years. This ambitious goal, if achieved, would position India as a significant contributor to Apple’s global iPhone production, accounting for a quarter of the total output. While China remains the largest iPhone producer, Apple’s strategic diversification efforts signal a broader trend among tech companies seeking to capitalize on India’s burgeoning manufacturing ecosystem.
Leveraging Domestic Capabilities
From Apple to Foxconn, industry players are increasingly leveraging India’s domestic capabilities to enhance supply chain resilience and expand production capacity. By embracing local manufacturing, these companies not only benefit from cost efficiencies but also contribute to India’s economic growth and position the country as a key player in the global electronics manufacturing landscape.
