iPhone Exports from India Reach Record High in April-June Quarter

By siliconindia  |  Friday, 26 July 2024, 14:07 IST

iPhone Exports from India Reach Record High in April-June Quarter
In a significant milestone for India's local manufacturing push, Apple has achieved record export numbers for iPhones in the April-June quarter, reaching approximately $3.8 billion. This accomplishment is largely attributed to the government’s production-linked incentive (PLI) scheme, which has bolstered local manufacturing efforts.
Industry data reveals that Apple hit an all-time high in exports for Q1 FY25 as manufacturers increasingly adopt the ‘China + 1 business strategy’ to diversify investments and reduce reliance on China.
In the previous fiscal year (FY24), Apple experienced unprecedented sales growth in India, fueled by increased manufacturing activities and a burgeoning premiumisation trend in the market. The tech giant recorded around $8 billion in sales in India, marking an impressive nearly 33 percent year-on-year increase.
The premiumisation trend has significantly strengthened in India, the world’s second-largest smartphone market, contributing to this growth. Industry estimates project that iPhone shipments will increase by over 20 percent this year, supported by robust domestic manufacturing and a strong distribution network.
Experts attribute Apple’s continued success to its strong brand presence and expanding channel distribution across the country. The company’s growth is further supported by government initiatives, including the Union Budget 2024-2025 announcement to reduce the basic customs duty (BCD) on mobile phones, printed circuit board assemblies (PCBA), and mobile chargers from 20 percent to 15 percent.
Finance Minister Nirmala Sitharaman highlighted the three-fold increase in domestic mobile phone production and an almost 100-fold jump in exports over the past six years, underscoring the maturity of the Indian mobile phone industry. 
India's electronics sector has seen rapid expansion, reaching $155 billion in FY23. Production nearly doubled from $48 billion in FY17 to $101 billion in FY23, with mobile phones now constituting 43 percent of total electronics production.
The country has significantly reduced its dependence on smartphone imports, now manufacturing 99 percent of devices domestically. This shift underscores India's growing prowess in electronics manufacturing and the success of policies aimed at boosting local production.
Apple's record iPhone exports from India mark a pivotal moment in the country’s manufacturing narrative, showcasing the effectiveness of government incentives and the potential for further growth in the sector.