Chennai egmore, Transit station in Chennai, India

Apple achieved a major milestone in India, producing over ₹1 lakh crore worth of iPhones in 2023, a significant increase from the previous year. Notably, ₹65,000 crore of these iPhones were exported, highlighting a robust shift in Apple's manufacturing strategy. Industry sources say the impressive production figure represents the factory gate value (FOB) and could translate to a market value reaching up to ₹1.7 lakh crore after accounting for taxes and dealer margins. This success surpasses Apple's production targets, potentially leading to increased PLI scheme benefits for its contract manufacturers.The Indian government, which introduced the PLI scheme to incentivize local production, celebrates this victory. The scheme grants benefits based on FOB value, and Apple's achievement signifies progress in attracting supply chains away from China. "Apple has fulfilled its promise to establish India as a secondary hub for iPhone manufacturing," said an official familiar with the matter.Apple's market share in India has surged in recent years, climbing from 2% in FY18 to 6% in FY23, while Samsung's dipped from 26% to 20% during the same period. This coincides with Apple's expanding business in India, which saw revenue jump from Rs 13,097 crore in FY18 to Rs 49,322 crore in FY23.To facilitate this production shift, Apple is building a network of Indian suppliers, including a unit of the Tata Group. This achievement aligns with the upcoming visit of U.S. Trade Representative Katherine Tai, who will participate in the Indo-US Trade Policy Forum this week. All three of Apple's contract manufacturers in India - Foxconn, Pegatron, and Tata-owned Wistron - have been approved for PLI benefits. Samsung and another Foxconn unit, Bharat FIH, are also among the scheme's beneficiaries. However, Bharat FIH, which manufactures phones for Xiaomi, falls short of the minimum ₹15,000 price point requirement for PLI eligibility.The smartphone PLI scheme, one of 14 introduced by the government in FY21, is considered the most successful. Apple declined to comment on specific iPhone production numbers. Foxconn remains the primary manufacturer of iPhones in India, producing 68% of the total, followed by Pegatron (18%) and Wistron (14%). Notably, in 2023, Foxconn exported nearly 58% of its iPhone production, while Pegatron and Wistron focused heavily on exports, shipping out close to 80% and 96% of their phones, respectively. Around 65% of iPhones manufactured in India are exported to the US, Europe, West Asia, and other regions.Apple became the first standalone brand to surpass the $5 billion export mark from India in FY23. Led by iPhones, India's total mobile phone exports reached a record ₹90,000 crore in the same year. According to the commerce ministry, mobile phones have propelled electronics into India's fifth largest export category within the first eight months of the current fiscal year.Key points:Apple's iPhone production in India soared past ₹1 lakh crore in 2023.Exports of made-in-India iPhones reached ₹65,000 crore.Apple's success strengthens India's PLI scheme and its push for local manufacturing.The company's growing market share and export activity contribute to India's electronics export boom.

Chennai EgmoreFOLLOW

Chennai egmore, Latest News

Aam Aadmi Party (AAP) leader and Rajya Sabha member Raghav Chadha declared on Tuesday that the I.N.D.I.A bloc is ... ...

India recorded 272 new COVID-19 cases on Monday, bringing the active caseload down to 2,990, the lowest since December ... ...

The I.N.D.I.A alliance, which includes 28 parties, is expected to agree on over 400 of the 543 Lok Sabha ... ...

Kolkata, Jan 13 Barring a last moment change in decision, the presence of West Bengal Chief Minister and the ... ...

Top leaders of parties of the opposition INDIA bloc will hold discussions on January 13 on strengthening the alliance, ... ...

India has logged 827 cases of the JN.1 sub-variant of COVID-19 across 12 states, with Maharashtra leading the way ... ...

In the aftermath of the diplomatic tensions between India and the Maldives, tourism bodies in the archipelago nation are ... ...

Apple achieved a major milestone in India, producing over ₹1 lakh crore worth of iPhones in 2023, a significant ... ...