India's role in Apple's success: The story behind Rs. 1,00,000 crore (US$ 11.53 billion) iPhone exports

Apple has crossed the Rs. 1,00,000 crore (US$ 11.53 billion) mark in iPhone exports from India in 2024, achieving record outbound shipments worth Rs. 1,10,989 crore (US$ 12.8 billion), marking a 42% YoY increase. This surge is attributed to greater local value addition, now ranging from 15-20% depending on the model, and a nearly 46% rise in domestic production, reaching Rs. 1,48,014 crore (US$ 17.07 billion) compared to the previous year. In 2023, Apple exported Rs. 78,039 crore (US$ 9 billion) worth of iPhones, representing three-fourths of its domestic production output of Rs. 1,04,052 crore (US$ 12 billion).

A government official called Apple’s export achievement “unprecedented for a single product in a year,” underlining the role of the smartphone production-linked incentive (PLI) scheme. Apple has gradually increased its local value addition to 20% for some models, up from 5-8% when the PLI scheme started. If this momentum continues, Apple could reach Rs. 2,60,130 crore (US$ 30 billion) in annual production, increasing India's share in its global iPhone production to over 26% from the current 14%. The company is also expanding its retail presence in India, the world’s second-largest smartphone market, where local iPhone sales are expected to grow by 20% this year, reaching up to 15 million units. Preliminary data shows that Foxconn (Hon Hai), Tata Electronics, and Pegatron are key contributors to the export growth, accounting for 54%, 29%, and 17%, respectively. Apple's ecosystem has consistently surpassed projections for production, exports, and job creation, making it India’s largest private-sector employer, with 185,000 direct jobs, over 70% of which are held by women.

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