Apple Surpasses Expectations with iPhones Worth Over Rs 1 Lakh Crore Manufactured in India
In a significant achievement, Apple produced iPhones with a total value exceeding Rs 1 lakh crore in India last year, showcasing substantial growth compared to the previous year. Out of this, iPhones worth Rs 65,000 crore, manufactured in India, were exported to various countries between January and December, according to a report by The Economic Times.
The reported value of Rs 1 lakh crore represents the price when the iPhones leave the factory (Freight on board or FOB). However, the actual market value could range between Rs 1.5 lakh crore and Rs 1.7 lakh crore, considering taxes and dealer margins in different countries, as stated by an official quoted in the report.
Apple’s accomplishment surpasses the targets set under the production-linked incentive (PLI) scheme, potentially paving the way for additional incentives for the company’s contract manufacturers, the official added. The PLI scheme is applicable to the value of the device when it exits the factory, aligning with the government’s strategy to shift supply chains away from China.
This success underscores Apple’s commitment to establishing India as a significant hub for iPhone manufacturing, expanding its supply chain within the country. According to Counterpoint data cited in the ET report, Apple has become possibly the largest phone manufacturer in India by value, increasing its market share from 2 per cent in FY18 to 6 per cent in FY23.
While Samsung’s market share declined, Apple’s India business experienced substantial growth, building a network of Indian suppliers, including a Tata Group unit, to support the relocation of production from China.
Apple’s three contract manufacturers in India—Foxconn, Pegatron, and Tata-owned Wistron—have all received approval to receive incentives under the PLI scheme. Foxconn leads the production with 68 per cent contribution, followed by Pegatron at 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, with approximately 65 per cent sent to these regions, as indicated in the report.
Notably, in FY23, Apple became the first standalone brand to surpass the $5 billion export mark from India, driven predominantly by iPhone exports. This achievement contributed to India’s total mobile phone exports reaching Rs 90,000 crore in FY23, solidifying electronics as the fifth-largest export category in the country.