Apple's iPhone Exports from India to Hit Rs 1 Trillion by FY25
The onset of Apple's fiscal year 2025 (FY25) sees a striking upsurge in iPhone exports from India. According to official figures, exports of iPhones manufactured in the country nearly doubled in April, totaling $1.1 billion (Rs 9,000 crore), compared to $580 million recorded the previous year. Analysts observe that April typically experiences sluggish export activity worldwide owing to the lack of significant festive sales events.
Encouraged by this surge, analysts predict that the tech giant will surpass the Rs 1 trillion export mark in FY25, cementing India as its second-largest manufacturing base for iPhones after China. Presently, iPhones are solely produced in India and China. Experts anticipate that around 14-15 percent of production has already transitioned to India, with projections suggesting this figure could rise to 26 percent 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. Apple operates through three contract manufacturers in India: Foxconn, Wistron, and Pegatron, all beneficiaries of the smartphone production-linked incentive (PLI) scheme.
Foxconn, the leading contract manufacturer based in Taiwan, stands out as the primary exporter of iPhones manufactured in India, responsible for over 70 percent of shipments. Following closely is Wistron, accounting for 27 percent, with Pegatron making up the remaining share. It's noteworthy that Wistron is currently owned by the Tata Group, while Pegatron is in talks with the Indian conglomerate for a potential majority stake sale.
Given the momentum observed in April, authorities foresee Apple exceeding targets in the fourth year (FY25) of the PLI scheme. Apple's contract manufacturers notably distinguish themselves as among the select few meeting PLI targets, alongside Samsung and India's Dixon Technologies, which have consistently achieved goals since the scheme's inception in FY21.
While the majority of iPhones made in India are bound for export, the domestic market is also witnessing strong growth for Apple, with a Year-on-Year (YoY) surge of over 38 percent. Utilizing its growing local manufacturing setup, Apple is actively striving for a double-digit smartphone market share in India, aiming to raise it from approximately 7 percent in FY24. Apart from exports, the Apple ecosystem, which includes iPhone manufacturers and various vendors, has created more than 150,000 new jobs since the inception of the PLI scheme three years ago.
Amid geopolitical tensions and challenges in crucial US and China markets, Apple has intensified its focus on India, which ranks as the world's second-largest smartphone market. The company has broadened its presence by collaborating with thousands of authorized resellers nationwide, in addition to partnering with established retail chains such as Croma, Reliance Retail, and Vijay Sales. As it enters its fourth year, the five-year PLI scheme has bolstered mobile phone exports, particularly iPhones, positioning electronics as the fifth-largest export category in India. Electronics exports surged by 23.6 percent to $29.1 billion in FY24.
