Apple Inc. is embarking on an ambitious mission to significantly increase its manufacturing operations in India, with plans to expand production to over $40 billion within the next four to five years. This ambitious move comes on the heels of Apple crossing the $7 billion production milestone in the previous fiscal year, according to government sources cited by PTI.
A government official, speaking on the matter, shared, “Apple has plans to increase production in India to over $40 billion in the next 4-5 years. It has crossed $7 billion in the last fiscal.”
While Apple is already manufacturing iPhones in India, it’s gearing up to commence AirPods production next year. However, there are currently no immediate plans to manufacture iPads or laptops within India’s borders.
The government official noted, “They don’t have any plans to participate in IT hardware PLI. They may come at a later stage, but as of now, their focus is to scale up existing production levels.”
This strategic decision to ramp up production in India aligns with Apple’s broader global expansion strategy. On September 22, the tech giant released its highly anticipated iPhone 15 series, comprising the iPhone 15, iPhone 15 Plus, iPhone 15 Pro, and iPhone 15 Pro Max. For the first time ever, Apple made the India-manufactured iPhone 15 models available on the global sales debut day, marking a significant milestone in the company’s operations in India.
Industry insiders reported that sales of Apple’s iPhone 15 series experienced a remarkable 100 percent growth compared to the iPhone 14 series on its launch day. Apple’s global sales, spanning iPhones worth $191 billion and products totaling $38.36 billion in the wearable, home, and accessories segment, underscore its continued market dominance.
According to Counterpoint Research, Apple secured a commanding 59 percent market share in the ultra-premium smartphone segment, consisting of phones priced above Rs 45,000 apiece, during the first quarter of 2023. India has emerged as one of Apple’s top-five markets globally, reflecting the company’s impressive growth trajectory.
In a recent report, Apple surpassed its South Korean competitor, Samsung, in terms of smartphone export volumes from India for the first time. Apple accounted for 49 percent of the country’s total 12 million shipments in the June quarter, outpacing Samsung’s 45 percent, according to the Economic Times. Apple’s remarkable rise in export volumes illustrates its swift expansion in local manufacturing within India.
Data from the industry indicated that Apple’s share of export volumes surged from just 9 percent of the approximately 8 million smartphones shipped in Q2 2022 to nearly half of the total smartphone exports in Q2 2023. In comparison, Samsung’s share of export volumes declined from 50 percent in Q1 2023 to 45 percent in Q2 2023.
Apple’s ascent in India’s manufacturing landscape began in 2017, with three of its contract manufacturers—Foxconn, Wistron, and Pegatron—boosting production from the second half of 2022, focusing on the iPhone 14 to cater to the growing Indian market and expanding exports. All three iPhone manufacturers are participants in the Indian government’s production-linked incentive scheme for smartphone manufacturing.
With its sights set on a $40 billion production target, Apple’s commitment to India’s manufacturing ecosystem appears stronger than ever.
