Apple has set a formidable target to produce iPhones valued at nearly ₹1 lakh crore in India by the end of the fiscal year in March 2024. With significant progress already made, having manufactured over ₹60,000 crore worth of iPhones in the initial seven months of the current fiscal year, Apple is on track to achieve this ambitious milestone.
Despite challenges posed by global headwinds and reduced electronics consumption, especially during the festive season, Apple has remained committed to its manufacturing objectives. Approximately 70% of iPhones produced in India are exported, with ₹40,000 crore ($5 billion) worth of iPhones exported between April and October in the ongoing fiscal year.
Industry executives, as reported by Economic Times, highlight Apple’s commendable achievement, exceeding the total export mark of the previous year and becoming the first single brand to surpass $5 billion in exports from India. Apple’s strategic focus on India as a market and its aim to establish the country as a key manufacturing and export hub underscore its remarkable export numbers.
While Apple is yet to respond to inquiries about its production and export figures, it is noteworthy that production in India is carried out by Foxconn and Pegatron in Tamil Nadu, as well as Wistron (now under Tata group) in Karnataka, under the production-linked incentive (PLI) scheme for smartphone manufacturing.
The recent acquisition of Wistron Infocomm Manufacturing (India) Pvt Ltd by Tata Group marks a significant development, making it the first Indian entity officially part of Apple’s supply chain as an iPhone manufacturer. Valued at $750 million, this deal includes a $550 million inter-corporate loan from the parent company to Wistron India.
Apple’s journey towards India as a manufacturing center began in 2018-19, with limited production of iPhone SE, 7, and 8 models. Over the past 2.5 years, the company has substantially increased manufacturing capacity, conducting tests between 2018 and 2020 to assess the manufacturing landscape and labor availability.
The current fiscal year has witnessed a remarkable surge in production capacity, growing from Rs 16,750 crore in 2020-21 to Rs 60,000 crore within the initial seven months. This growth is attributed to Apple’s decision to assemble non-Pro iPhone models in India. As Apple continues to demonstrate confidence in India’s manufacturing capabilities, it is anticipated that production figures will experience exponential growth.
Market analysts predict that Apple will benefit from the premiumization trend in the domestic market, projecting sales of 9-10 million iPhones in India by 2024, a substantial increase from the less than 7 million sold in 2023.