Apple's India Factories To Produce iPhones Worth $12 Bn In 2023-24

Apple is set to increase its iPhone production in India to $12 billion in freight on board (FOB) value during 2023-24, as per a Business Standard report. This move not only exceeds the initial plan to shift about 9% of its total production to India by FY24 but also represents a major leap in the company’s production-linked incentive (PLI) scheme involvement.

What Happened? In the first nine months of FY24, Apple, through its vendors, Foxconn Hon Hai, Pegatron (now Tata Group), and Wistron, has already manufactured iPhones worth $9.4 billion (₹78,172 crore) in India. This figure surpasses its full-year commitment of $8.9 billion (₹74,016 crore) under the PLI scheme, highlighting a substantial increase in production capacity.

Interestingly, Apple will cater only a quarter of these iPhones to the Indian market, while it intends to export the majority to markets like the US, Europe, and West Asia.

See also: 5 Lakh TCS Employees Will Get Generative AI Training As Firm Looks To Stay Ahead Of Curve

Global market focus and future projections: Apple’s India turnover reached approximately ₹49,322 crores ($5.94 billion) for FY23, as per the Ministry of Corporate Affairs, the Indian sales account for just 1.5% of its global turnover of $383.2 billion.

Apple’s production and export strategy from India seems aligned with seasonality and global demand patterns. Exports surged to 80% of total iPhone production in the last quarter of FY24, coinciding with the global launch of iPhone 15 and the festive season demand spike in the US and Europe.

According to JP Morgan projections, Apple might shift up to 25% of its total iPhone production to India by 2026, signifying a major reshaping of its global supply chain and production dynamics.

Read next: UPI Goes International: Google India And NPCI Sign MoU For Global Expansion

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: TechAppleiPhone