Cupertino-based tech giant Apple reportedly manufactured iPhones worth INR 1 Lakh Cr in India in 2023.
An official told The Economic Times that the company ‘sharply’ ramped up its production in the country last year versus the year before. As per the report, the freight on board (FOB) value of the Apple devices stood at INR 1 Lakh Cr while the market value of the production stood between INR 1.5 Lakh Cr to INR 1.7 Lakh Cr.
For the uninitiated, FOB is the price of a product when it leaves the factory while the market value includes other charges such as taxes and dealer commissions.
Of the total output, ‘Made in India’ iPhones worth INR 65,000 Cr were reportedly exported in the twelve month period between January and December 2023. Apple manufactured and exported five device models out of India in 2023 – iPhone 11, iPhone 12, iPhone 13, iPhone 14 and iPhone 15.
“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,” said the same official as per ET.
Lately, Apple has been moving a part of its production out of China amid the ongoing geopolitical tensions between Beijing and Washington DC. The company’s pivot to India has largely been led by the Centre’s attractive production-linked-incentives (PLIs) for manufacturers in the country.
As a result, a host of Apple vendors have made a beeline for India, including names such as Foxconn, Pegatron, Wistron India (acquired by the Tata Group in late 2023). As per the report, Foxconn emerged as the biggest manufacturer of iPhones in India, contributing 68% to the total production. It was followed by Pegatron, which accounted for 18% of the production, while Wistron’s share stood at 14%.
Foxconn exported nearly 58% of its Made in India iPhones, while Pegatron and Wistron shipped 80% and 96% of their production overseas, respectively. Of the total India production, 65% of the iPhones were exported to the US, Europe, West Asia, among others.
Apple plans to manufacture more than 50 Mn iPhones in India annually, as per reports that surfaced in early December last year. The red carpet rolled out by the Centre has resulted in Apple increasing its production in India from a mere 1% of its total capacity in 2021 to around 7% in December 2023.
In addition, Foxconn is also looking to invest an additional INR 13,911 Cr to ramp up production at its Karnataka facility. Alongside, another Apple supplier and gorilla glass maker Corning Inc is also mulling investing INR 1,000 Cr to build a manufacturing facility in Tamil Nadu.
On the consumer side, Apple increased its India market share from sub-2% in FY18 to 6% at the end of March 2023. Meanwhile, Samsung, even as it maintained its stranglehold over the Indian premium smartphone market, saw its market share decline to 20% in FY23 from 26% in FY18.
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