- Apple aims to manufacture more than 50m iPhones in India per year, as it aims to shift some of the production out from China.
- Apple’s total economic contribution in India reach staggering $23.5b in last fiscal year.
The landscape of mobile manufacturing in India has undergone a remarkable transformation in recent years, particularly exemplified by the burgeoning production of Apple’s iconic iPhone.
Buoyed by the government’s ambitious ‘Make in India’ initiative and the strategic framework of the Production-Linked Incentive (PLI) scheme, the production of iPhones in the subcontinent has escalated dramatically from less than one per cent in 2017 to an impressive 10 per cent by 2023.
Global investment firm Jefferies predict that this figure might increase further to 25 per cent of Apple’s global shipments by 2025, reflecting not only a shift in production paradigms but also a concerted effort to bolster local economies and develop an indigenous manufacturing ecosystem.
Apple aims to manufacture more than 50 million iPhones in India per year, as it aims to shift some of the production out from China.
Employment opportunities
Initiated in 2014, the ‘Make in India’ programme was designed to transform India into a global manufacturing hub. By encouraging multinational corporations to set up manufacturing units in the country, the initiative aimed not just at economic growth but at providing employment opportunities and enhancing technological capabilities.
The mobile PLI scheme, introduced as part of this initiative, catalysed investment by providing financial incentives to companies, thus encouraging them to ramp up local production.
For Apple, the PLI scheme proved to be a boon, allowing the tech giant to streamline its manufacturing processes and reduce reliance on its traditional manufacturing base in China.
With the launch of the iPhone 16 Pro and Pro Max models on Monday, Apple has underscored its commitment to India as a pivotal manufacturing destination. The timely introduction of these products within the Indian market demonstrates Apple’s strategic alignment with local manufacturing efforts, showcasing India as an integral part of its global supply chain.
The initiative not only enhances the availability of the latest technology for Indian consumers but also promotes the notion of self-reliance in manufacturing.
Significant growth in exports
The figures surrounding Apple’s production and export activities in India are telling. Reports indicate a leap in iPhone exports from India, surging to an impressive $12.1 billion in the fiscal year 2023−24 from just $6.27 billion the previous year.
The substantial growth reflects Apple’s increasing reliance on India as a key manufacturing hub. In the broader context of its operations, Apple’s total economic contribution in India reached a staggering $23.5 billion in the last fiscal year (FY24), further cementing the company’s influence in the local market.
The burgeoning production capability is not merely a function of external factors but also a reflection of the intrinsic potential within India’s manufacturing sector. While the electronics export trend is on an upward trajectory, it still signifies a room for enhancement in value addition.
The current statistics indicate that electronics imports are more than double the exports, underscoring a significant opportunity for in-sourcing and further enhancing local manufacturing capabilities.
Advantage India
The Indian government is cognizant of the need to promote manufacturing across various sectors. The allocation of Rs2 trillion across 14 sectors under the PLI programme, alongside an additional Rs70,000 crore for boosting the semiconductor and display manufacturing ecosystem, illustrates an expansive vision for the future of manufacturing in India.
The comprehensive framework aims to reduce import dependency while fostering innovation and technological advancement.
Experts within the industry propose that Apple’s anticipated success with its new iPhone 16 series could potentially intensify this growth momentum.
As the company shifts its focus towards aggressive marketing strategies tailored to Indian consumers, it is expected to see a 30 per cent increase in sales in comparison to the previous iPhone 15 generation during the launch quarter, according to insights shared by Prabhu Ram from CyberMedia Research.
The trend points not only to the aspirational appeal of Apple products but also to a wider recognition among Indian consumers of the advantages associated with locally produced items.
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