In a significant manufacturing feat, Apple reportedly produced iPhones valued at INR 1 Lakh Crore in India during 2023, marking a substantial increase compared to the previous year. According to an official source cited by The Economic Times, the company significantly escalated its production activities in India in the said period.
The Freight on Board (FOB) value, representing the product’s price when leaving the factory, amounted to INR 1 Lakh Crore. However, when considering additional charges like taxes and dealer commissions, the overall market value of the production ranged between INR 1.5 Lakh Crore to INR 1.7 Lakh Crore.
Of the total output, Apple exported ‘Made in India’ iPhones worth INR 65,000 Crore during the twelve months from January to December 2023. The exported devices included iPhone models 11 through 15.
The official from Apple mentioned, “Apple has delivered on the promise of making India a second home for iPhone manufacturing. The company is now expanding its supply chain in the country.”
Manufacturers’ Contributions and Export Trends:
- Foxconn Dominance: Foxconn emerged as the largest manufacturer of iPhones in India, contributing a substantial 68% to the total production.
- Pegatron and Wistron Shares: Pegatron accounted for 18% of the production, while Wistron’s share stood at 14%.
- Export Percentages: Foxconn, Pegatron, and Wistron exported nearly 58%, 80%, and 96% of their Made in India iPhones, respectively.
- Export Destinations: Of the total production, 65% of iPhones were exported to the US, Europe, West Asia, and other regions.
Apple’s Growing Presence in India:
- Production Growth: Apple’s production in India has steadily increased, with plans to manufacture over 50 million iPhones annually in the country.
- Supplier Investments: Foxconn is set to invest an additional INR 13,911 Crore in its Karnataka facility, while Corning Inc is considering an INR 1,000 Crore investment in a manufacturing facility in Tamil Nadu.
- Market Share Expansion: On the consumer side, Apple has seen its market share in India grow from sub-2% in FY18 to 6% at the end of March 2023.
While Apple navigates geopolitical shifts by moving a portion of its production from China to India, the Indian government’s production-linked incentives (PLIs) have played a crucial role in attracting major Apple vendors to set up manufacturing operations in the country.
