Apple aims for Rs 1 Lakh Cr iPhone production in FY24
Apple aims to achieve a production milestone of Rs 1 lakh crore for iPhone manufacturing in India by March 2024, leveraging an expanded manufacturing capacity. The production has already reached Rs 60,000 crore within the first seven months of the fiscal year. Sources familiar with the situation suggested that if this target isn't met in this fiscal year, it's anticipated to be accomplished in the initial quarter of FY25. Despite global consumption challenges, Apple is preparing to fulfill the festive demand in the US and the Western markets. Notably, approximately 70% of iPhones manufactured in India are destined for export, amounting to exports worth Rs 40,000 crore ($5 billion) from April to October in this fiscal year.
During FY23, the iPhone became the inaugural single brand to exceed the $5 billion export milestone from India. This year, exports have demonstrated an impressive 185% year-on-year surge in the initial seven months, surging from Rs 14,000 crore during the corresponding period last year. Navkendar Singh, an associate vice president at IDC India, highlighted, "These robust export figures align with Apple's commitment to India as a market and, notably, positioning India as a crucial manufacturing and export center for the medium to long term".
Apple's manufacturing operations in India are facilitated through Foxconn and Pegatron in Tamil Nadu and Wistron (now owned by the Tata Group) in Karnataka, functioning under the production-linked incentive (PLI) scheme for smartphone manufacturing. Recently, the Tata Group finalized an agreement with Wistron Hong Kong, acquiring complete equity in Wistron Infocomm Manufacturing (India). This collaboration designates the Tata Group as the first Indian entity officially joining Apple's supply chain as an iPhone manufacturer, valued at $750 million, which includes a $550 million inter-corporate loan from the parent company to Wistron India.