Apple’s India iPhone exports soar, set to cross Rs 1 trillion mark in FY25

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3 min read Last Updated : May 13 2024 | 10:28 AM IST

Apple‘s fiscal year 2025 (FY25) has started with a remarkable surge in iPhone exports from India. Official data reveals that exports of iPhones produced in the country nearly doubled in April, reaching $1.1 billion (Rs 9,000 crore) compared to $580 million a year ago, reported The Economic Times (ET). Analysts note that April typically witnesses subdued export activity globally due to the absence of major festive sales events.


Buoyed by this surge, experts anticipate the tech behemoth will breach the Rs 1 trillion export milestone in FY25, solidifying India as its second-largest manufacturing hub for iPhones outside China. Currently, iPhones are exclusively manufactured in India and China, with experts projecting that 14-15 per cent of production has already shifted to India, a figure expected to climb to 26 per cent by 2026.


Apple predominantly exports a bulk of its total production from India. In FY24, the company’s overall production in India soared to $14 billion (Rs 1.2 trillion), with exports surpassing $10 billion (Rs 85,000 crore). These figures represent the highest achieved by any company in India for a single financial year.


To be sure, the export numbers take into account the freight on board (FOB) value at which the device leaves the factory. Retail prices are about 60 per cent higher.


Apple operates through three contract manufacturers in India—Foxconn, Wistron, and Pegatron—all beneficiaries of the smartphone production-linked incentive (PLI) scheme.


Foxconn leads Apple’s export charge


Taiwan-based Foxconn, the world’s largest contract manufacturer, emerges as the primary exporter of India-made iPhones, accounting for over 70 per cent of shipments, followed by Wistron (27 per cent), with Pegatron contributing the remainder. Notably, Wistron is now under the ownership of the Tata Group, while Pegatron is in discussions with the Indian conglomerate for a majority stake sale.


With the momentum witnessed in April, officials anticipate Apple surpassing targets in the fourth year (FY25) of the PLI scheme.


Apple’s contract manufacturers stand out among the few meeting PLI targets, with Samsung and India’s homebred Dixon Technologies consistently meeting goals since the scheme’s inception in FY21. However, industry executives highlight that most other PLI beneficiaries are struggling to meet targets.


Apple’s local market expansion in India


While a majority of iPhones manufactured in India are destined for exports, the domestic market is also experiencing robust growth for Apple, surging over 38 per cent Year-on-Year (YoY).


Leveraging its expanding local manufacturing operations, Apple is actively pursuing a double-digit smartphone market share in India, aiming to elevate it from around 7 per cent in FY24.


Beyond exports, the Apple ecosystem, comprising iPhone manufacturers and multiple vendors, has generated over 150,000 new jobs since the PLI scheme’s launch in the past three years.


Apple’s retail collaborations


Amid geopolitical tensions and challenges in key US and China markets, Apple has intensified its focus on India, the world’s second-largest smartphone market. 


The company has expanded its footprint by partnering with thousands of authorised resellers nationwide, alongside established retail chains like Croma, Reliance Retail, and Vijay Sales. Apple aims to bolster its volume share by doubling it by offering competitive margins and additional incentives.


Entering its fourth year, the five-year PLI scheme has bolstered mobile phone exports, particularly iPhones, positioning electronics as India’s fifth-largest export category. Electronics exports in India surged by 23.6 per cent to $29.1 billion in FY24.

First Published: May 13 2024 | 10:28 AM IST