Apple Plans to Boost Production in India Fivefold to $40 Billion Over Next 4-5 Years

Apple, the renowned iPhone maker, is gearing up to significantly expand its manufacturing operations in India. Government sources report that the company aims to increase its production in the country by over fivefold, reaching approximately $40 billion (about 3.32 lakh crore) within the next 4-5 years.

This ambitious move follows Apple’s successful crossing of the $7 billion production mark in the previous fiscal year. In addition to iPhones, Apple is poised to commence manufacturing AirPods in India. However, it appears that the company currently has no immediate plans to produce iPads, laptops, or participate in IT hardware Production Linked Incentive (PLI) schemes.

Production Growth Targets:

  • Apple plans to scale up its production in India from $7 billion to a remarkable $40 billion within the next 4-5 years.
  • The company aims to establish itself as a major player in India’s manufacturing landscape.

Product Expansion:

  • Apple, known for manufacturing iPhones in India, is set to diversify its production by adding AirPods to its manufacturing portfolio.
  • While iPhones are already being produced in India, the manufacturing of AirPods is expected to commence in the near future.

No Immediate Plans for iPads and Laptops:

  • Despite its expansion in smartphone and accessory production, Apple currently has no intentions to manufacture iPads or laptops in India.
  • The company is not participating in IT hardware PLI schemes at this time, with potential future considerations.

Global Sales Overview:

  • In the last fiscal year, Apple achieved impressive global sales figures, including $191 billion from iPhone sales and $38.36 billion from the wearable, home, and accessories segment.
  • Although the company reported a slight dip in iPhone sales and the wearable, home, and accessories segment in the first nine months of the current fiscal year, it remains a global tech giant.

Becoming the Leading Mobile Phone Exporter:

  • Apple has successfully become the largest exporter of mobile phones from India, solidifying its presence in the country’s manufacturing and export sectors.

Strong Demand for iPhone 15 Series:

  • The launch of Apple’s iPhone 15 series witnessed remarkable growth, with sales surpassing the previous iPhone 14 series.
  • India is among the top-five markets for Apple, underscoring the increasing demand for its products in the country.

Same-Day Availability of ‘Made-in-India’ iPhones:

  • Apple’s latest move includes making ‘made-in-India’ iPhones available for purchase on the same day as their global launch.
  • This signifies the company’s commitment to India as a significant market for its products.

Market Dominance in Ultra-Premium Segment:

  • According to market research firm Counterpoint Research, Apple holds a commanding 59 percent market share in the ultra-premium smartphone segment (phones priced above Rs 45,000) during the first quarter of 2023.
  • India has emerged as one of the top-five markets for Apple, indicating its growing influence and market presence.

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Piyush Shukla

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