Apple Inc. is set to ramp up its iPhone production in India, with an expected reach of $12 billion in Freight On Board (FOB) value by 2023-24, according to a report by local publication Business Standard. This move not only surpasses the initial plan of shifting nearly 9% of its total production to India by fiscal year 2024 but also signals a significant increase in Apple’s involvement in the Production-Linked Incentive (PLI) scheme.
In collaboration with its suppliers, Foxconn Hon Hai, Pegatron India (currently part of Tata Group), and Wistron, Apple has already produced iPhones worth $9.4 billion in India during the first three quarters of the fiscal year 2024. This figure exceeds its full-year commitment of $8.9 billion under the PLI scheme, showcasing a notable expansion in production capacity.
It is worth noting that only a quarter of these iPhones will cater to the Indian market, with the majority intended for export to regions such as the US, Europe, and West Asia. This indicates Apple’s focus on global demand and its strategy to align production with seasonal fluctuations.
The turnover of Apple’s India sector was approximately $5.94 billion for FY23, representing a mere 1.5% of its global turnover of $383.2 billion. However, with the projected increase in production, Apple’s India sector is expected to play a more significant role in the company’s overall revenue.
Based on projections by JP Morgan, Apple may divert up to 25% of its total iPhone production to India by 2026. This suggests a major overhaul in the company’s global supply chain and production strategies, highlighting India’s growing importance as a manufacturing hub.
Apple’s decision to boost iPhone production in India aligns with the country’s “Make in India” initiative, which aims to promote domestic manufacturing and attract foreign investments. It also reflects Apple’s confidence in India’s skilled workforce and favorable business environment.
Overall, Apple’s increased investment in India’s manufacturing sector is a positive development for the country’s economy. It not only creates job opportunities but also strengthens India’s position in the global supply chain. With Apple’s continued expansion in India, the country is poised to become a key player in the global smartphone market.
