Indian Economy News

Apple targets 32% of iPhone production and 26% of value in India by FY27

  • IBEF
  • November 12, 2024

Apple Inc. and its suppliers are targeting the assembly of 32% of the global iPhone production volume and 26% of its value in India by the 2026-27 fiscal year, following the conclusion of the five-year Production-Linked Incentive (PLI) scheme for mobile devices. This shift could translate into a production value exceeding US$ 34 billion, assuming global iPhone sales remain consistent with the levels observed in the 2023-24 fiscal year. Discussions between Apple, its vendors, and government officials have informed these estimates, although a query to Apple for confirmation went unanswered. For the first half of the 2024-25 fiscal year, Apple’s vendors project a freight-on-board (FOB) production value of US$ 9 billion, with expectations that India will account for 17-18% of global iPhone production volume and 14% in terms of value by the end of the financial year.

In the 2023-24 fiscal year, India contributed 12-14% of the global iPhone production volume, generating a production value of approximately US$ 14 billion. Looking ahead, the production value is expected to increase to US$ 18 billion in fiscal year 2024-25, with a market value around US$ 27 billion. This significant transition of iPhone production from China to India is crucial, as iPhones represent 51% of Apple’s total global revenue, which amounted to US$ 391 billion for the fiscal year ending September 30, 2024. The introduction of the high-value iPhone 16 Pro series being assembled in India is anticipated to further enhance the value share in the coming years, underscoring the potential for substantial incremental revenues for the Indian economy.

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

Partners
Loading...