Apple's India Business Surpasses $23 Billion Amid Record Manufacturing Growth

A surge in iPhone production and domestic sales of MacBooks, iMacs, iPads, Watches, and AirPods has propelled the value of Apple's operations in India to exceed Rs 2 lakh crore ($23.5 billion) in FY24, according to top officials. This marks a significant increase from Rs 1.15 lakh crore the previous year. Officials noted that Apple has likely achieved the fastest growth in production and exports by any company in India over the past 50 years, positioning the Cupertino-based tech giant as the largest global value chain (GVC) operating domestically. Additionally, Apple is the first GVC in India to rapidly shift part of its supply chain from China.

A recent Economic Survey reveals that India now accounts for approximately 14% of the US tech giant's total production, solidifying its position as a key hub for global exports. This marks a significant increase from the 7% contribution in FY23, with iPhones leading the figures. Of the Rs 2 lakh crore valuation, iPhones with an estimated market value of around Rs 1.35 lakh crore ($15 billion) were exported in the last fiscal year, according to official data. Additionally, domestic sales of Apple products contributed approximately Rs 68,000 crore ($8 billion) in FY24.

Apple’s share in India is less than 6%, though rising steadily from 2% in FY18, as the market is largely dominated by the Android ecosystem — led by Chinese brands such as Vivo and Xiaomi. Also, India revenue contributed less than 2% of the company’s global revenue of $383 billion in FY23. Apple follows an October-September fiscal year. Its fiscal 2024 numbers will be announced in October. While Apple has operated a sales and distribution business in India for several years, the acceleration in its operations has come since 2020, when the government announced the smartphone production-linked incentive (PLI) scheme.

Apple started manufacturing iPhones in India in 2021, the first time it was doing so outside China. Ever since, the production of iPhones in India has been rising steadily through its three contract manufacturers–Foxconn, Wistron and Pegatron–reaching Rs 1.20 lakh crore in FY24. Tata acquired Wistron’s India facility late last year. The government pays incentives on the freight on board (FOB) value at which the device leaves the factory. The market value or the retail prices are 50-60% higher.

In FY24, Apple produced iPhones worth Rs 1.80 lakh crore based on market value. Of this total, 75%—valued at nearly Rs 1.35 lakh crore—were exported to Europe, the US, West Asia, and other regions, while the remaining Rs 45,000 crore came from local sales. Experts note that local manufacturing of iPhones has enabled Apple to significantly grow its sales in India, not just for iPhones but across its entire product range. Apple's revenue in India reached Rs 68,000 crore in FY24, a fivefold increase from Rs 13,756 crore in FY20, encompassing sales of MacBooks, iMacs, iPads, Apple Watches, AirPods, and other accessories.

Export figures are not included in India's revenue, but the increase in manufacturing within Apple's ecosystem has generated over 150,000 direct jobs since 2021. Foxconn operates Apple’s largest factory in the country, employing 41,000 people. During the third-quarter earnings call in August, Apple CEO Tim Cook informed analysts that the company had achieved quarterly revenue records in more than two dozen countries and regions, including Canada, Mexico, France, Germany, the UK, India, Indonesia, the Philippines, and Thailand. Cook visited India in April last year to meet Prime Minister Narendra Modi and inaugurate the company's first two retail stores in Delhi and Mumbai.