Indian Economy News

Apple aims to produce Rs. 1 lakh crore (US$ 12 billion) worth of iPhones in India by the end of FY24

  • IBEF
  • November 21, 2023

By the end of March 2024, Apple aims to have produced Rs. 1 lakh crore (US$ 12 billion) worth of iPhones in India. According to officials with knowledge of the situation, the tech giant has already scaled up its capacity to produce more than Rs. 60,000 crore (US$ 7.19 billion) in the first seven months of the fiscal year.

The officials stated that Apple is anticipated to meet that goal in the first quarter of FY25 if it fails to meet the Rs. 1 lakh crore (US$ 12 billion) milestone this fiscal year.

Apple is getting ready to fulfil the demand for its products during the festive season in the US and the West beginning this month. However, Western consumers' consumption of gadgets has declined as a result of global challenges.

Approximately 70% of iPhones made in India are exported; from April to October of this fiscal year, Apple exported iPhones Rs. 40,000 crore (US$ 5 billion).

The iPhone became the first single brand to export more than US$ 5 billion from India in FY23. Apple's exports have increased by 185% year-over-year in the first seven months of this year. iPhones valued at Rs.14,000 crore (US$ 1.67 billion) were exported during the same time the previous year.

Under the production-linked incentive (PLI) scheme for smartphone manufacture, Foxconn, and Pegatron in Tamil Nadu and Wistron (now owned by the Tata Group) in Karnataka handle Apple's manufacturing operations in India.

Furthermore, Wistron Hong Kong and Tata Group recently inked an agreement for Tata Group to buy a 100% equity stake in Wistron Infocomm Manufacturing (India). As a result, Tata Group became the first company in India to formally become an iPhone manufacturer in Apple's supply chain. A US$ 550 million inter-corporate loan from the parent company to Wistron India is part of the US$ 750 million agreement.

Apple has been increasingly focusing on India for iPhone manufacturing since 2018-19. The company tested the market for a couple of years by producing limited numbers of iPhone SE, 7, and 8 models. Apple conducted a comprehensive test of the Indian manufacturing landscape, including factors like the availability of skilled labour, from 2018 to 2020.

Apple is already benefiting from increasing premiumisation in the domestic market in addition to exports. Compared to fewer than 7 million in 2023, Apple is predicted to sell a record 9-10 million iPhones in India in 2024.

Furthermore, in December 2024, Apple plans to begin producing AirPods at the Foxconn facility in Hyderabad.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.