- Apple is planning to hit Rs 1 lakh crore iPhone production in India by the end of FT 2024.
- This ambitious goal comes on the heels of the company’s successful production surge, with over Rs 60,000 crore worth of iPhones manufactured in the first seven months.
- Even if the Rs 1 lakh-crore mark isn’t met by the fiscal year close, industry experts foresee a strong likelihood of attainment in the first quarter of FY25.
In a bid to fortify its manufacturing footprint in India, technology giant Apple is fervently working towards achieving a monumental production milestone of Rs 1 lakh crore for iPhones in the fiscal year ending March 2024. This ambitious goal comes on the heels of the company’s successful production surge, with over Rs 60,000 crore worth of iPhones manufactured in the first seven months.
What stands out is that a significant chunk, approximately 70%, of iPhones manufactured in India find their way to international markets. In the ongoing fiscal year, Apple has already exported an impressive Rs 40,000 crore ($5 billion) worth of iPhones between April and October, surpassing the total export figure for 2023.
Meeting the Festive Surge Amidst Global Challenges
Amidst global economic headwinds and a dip in electronics consumption, Apple’s focus on bolstering production capacity at its manufacturing partners has proven instrumental. Even if the Rs 1 lakh-crore mark isn’t met by the fiscal year close, industry experts foresee a strong likelihood of attainment in the first quarter of FY25.
A crucial aspect of Apple’s strategy involves catering to the heightened festive demand in the West, especially in the United States. However, external factors have posed challenges, making the pursuit of the Rs 1 lakh-crore target an intricate yet feasible endeavour.
Evolution of Manufacturing Landscape
The preceding fiscal year witnessed Apple’s historic achievement, marking the first time a single brand exceeded $5 billion in exports from India. Industry insiders attribute this success to Apple’s astute focus on India as a strategic market and its broader vision of establishing the nation as a key manufacturing and export hub.
Navkendar Singh, Associate Vice President of Client Devices and IPDS at IDC India, commended Apple’s export figures, underscoring their alignment with the company’s strategic objectives in the Indian market. Singh highlighted Apple’s commitment to transforming India into a manufacturing and export stronghold in the medium to long term.
The intricate web of Apple’s production activities in India involves manufacturing giants Foxconn and Pegatron in Tamil Nadu, along with Wistron (now under Tata Group) in Karnataka. Operating under the government’s production-linked incentive (PLI) scheme for smartphone manufacturing, these entities are obligated to submit quarterly reports on production, exports, investments, and employment data.
Apple’s Revenue Record in India
On a similar note, in the preceding quarter, Apple achieved a new revenue peak in India, surpassing its performance in other global markets, as reported by CEO Tim Cook. The primary driver of this success was the robust sales of iPhones from July to September. Apple experienced a noteworthy 34% year-on-year growth during this period, marking the highest quarterly shipments ever, surpassing 2.5 million units, according to Counterpoint Research.
Despite the comparatively lower average selling prices in India compared to other regions, Apple remains undeterred. Luca Maestri, the company’s CFO, attributed this resilience to the provision of more affordable options such as instalment plans and trade-in choices.
Cook underscored Apple’s robust double-digit growth in India, emphasizing its significance as an “incredibly exciting market” and a primary focus for the company. Despite India being predominantly an ‘Android’ market, Cook views this as an advantage, providing ample space for Apple to expand. He described India as an “extraordinary market” characterized by a growing middle class and numerous positive prospects for Apple’s future in the country.