Apple Plans Ambitious iPhone Production Ramp Up In India, Targets $12B Value By 2023-24

This story was first published on the Benzinga India portal.

Apple Inc. AAPL is ready to boost 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 initiative not only overshadows the initial plan of shifting nearly 9% of its total production to India by fiscal year 2024 but also denotes a significant rise in Apple's involvement in the Production-Linked Incentive (PLI) scheme.

In the first three quarters of the fiscal year 2024, Apple, in collaboration with its suppliers, Foxconn Hon Hai, Pegatron India (currently part of Tata Group), and Wistron, has already produced iPhones worth $9.4 billion ( INR 781.72 billion) in India. Surpassing its full-year commitment of $8.9 billion (INR 740.16 billion) under the PLI scheme, this figure signifies a notable increase in production capacity.

Interestingly, only a quarter of these iPhones will serve the Indian market, with the majority intended for export to regions such as the US, Europe, and West Asia.

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The turnover of Apple's India sector was approximately $5.94 billion (INR 493.2 billion) for FY23, as reported by the Ministry of Corporate Affairs. This figure represents a mere 1.5% of its global turnover of $383.2 billion.

Apple's production and export strategy in India appears to be in sync with seasonal fluctuations and global demand patterns. Exports soared to 80% of total iPhone production in the final quarter of fiscal year 2024, aligning with the global launch of iPhone 15 and the surge in demand during the festive season in the US and Europe.

Based on projections by JP Morgan, Apple may divert up to 25% of its total iPhone production to India by 2026, indicating a significant overhaul in its global supply chain and production strategies.

Photo Courtesy: Sophia Stark on Unsplash

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