Apple's iPhone Production In India Hits Historic $13.5B Milestone, Surpassing Targets

This story was first published on the Benzinga India portal.

The production of Apple Inc. AAPL iPhones in India has reached a groundbreaking level, exceeding INR 1 trillion ($13.5 billion) last year. According to data, obtained by the Indian daily Economic Times, iPhones valued at INR 650 billion ($8.8 billion) were exported from January to December.

An insider with knowledge of the production process explained, "The [INR 1 trillion] figure denotes the freight on board (FOB) value as the products leave the factory. After factoring in taxes and dealer margins in various countries, the market value could range from INR 1.5 trillion ($20.3 billion) to INR 1.7 trillion ($23 billion)."

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FOB refers to the cost of the goods as they depart the factory, excluding taxes and other charges. Apple's impressive performance has surpassed the targets set under India's production-linked incentive (PLI) scheme, possibly earning the company's contract manufacturers additional rewards according to the scheme's financial provisions.

This milestone highlights the Indian government's efforts to shift global supply chains from China to India.

Apple has notably become one of India's leading mobile phone manufacturers by market value. The technology juggernaut has boosted its market share in India from 2% in FY18 to 6% in FY23, as reported by Counterpoint. During this period, Apple’s revenues in India soared to INR 493.22 billion ($6.7 billion) from INR 130.97 billion ($1.8 billion). In contrast, despite a decrease in market share, Samsung's mobile revenues grew to INR 703 billion ($9.5 billion) from INR 373 billion ($5 billion).

Apple is also nurturing a strong network of Indian suppliers, such as a unit of the Tata Group, further strengthening its shift away from China.

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