iPhone production in India has increased from under 1% in 2017 to 10% in 2023 thanks to the ‘Make in India’ initiative and the production-linked incentive (PLI) scheme. Global investment firm Jefferies has reported that there are plans to raise this to 25% of global shipments by 2025. The rise in Apple’s local manufacturing in India is attributed to the introduction of the mobile PLI scheme and the diversification of global supply chains.
Upcoming iPhone Models
Apple is preparing to launch the latest iPhone 16 Pro and Pro Max models in India following their global release on Monday. The company plans to make its ‘Make in India’ iPhone 16 Pro and 16 Pro Max models available immediately after the launch.
Shifting Away From China For iPhone Production
Apple aims to produce over 50 million iPhones annually in India as part of its strategy to shift some production away from China. iPhone exports from India have seen a significant increase, reaching $12.1 billion in 2023-24, up from $6.27 billion in 2022-23. Overall, Apple’s operations in India were valued at $23.5 billion in the last fiscal year (FY24).
Potential For Further Value Addition
Jefferies notes that while electronics exports from India are growing rapidly, there is still potential for further value addition. The report also highlights that electronics imports remain more than double the value of electronics exports, indicating significant opportunities for local sourcing.
Government Support for Manufacturing
The Indian government is providing PLI support across 14 sectors totaling Rs 2 lakh crore, with an additional Rs 70,000 crore allocated to boost the semiconductor and display manufacturing ecosystem.
Future Growth Prospects
Industry experts suggest that Apple is set to continue its robust growth in India with the release of the new iPhone 16 series. This growth is expected to be driven by increased local manufacturing under the ‘Make in India’ initiative and supported by aggressive marketing strategies.
Prabhu Ram, VP of the Industry Research Group at CyberMedia Research, indicated that the new iPhones could see a 30% increase in sales compared to the previous iPhone 15 generation during the launch quarter.
