Apple has set a new milestone, surpassing the Rs 1 trillion mark in iPhone exports from India in 2024. The Economic Times stated that the company posted a year-on-year growth of 42%, and its outbound shipments' value was $12.8 billion (Rs 1.08 trillion). This rise indicates Apple's contribution to the Indian manufacturing and export sectors.
This has been due to increased value addition to the local products, whereby value addition currently stands at between 15-20% depending on the iPhone model. Further, domestic production increased by nearly 46% and stood at $17.5 billion (Rs 1.48 trillion) from the previous year. Apple's newly expanded production is a direct result of the smartphone production-linked incentive (PLI) scheme launched in India. The value addition percentage, as low as 5-8% earlier, has gradually improved to make India a more important part of Apple's supply chain.
The PLI Scheme has helped Apple take its manufacturing operations to the next level in India. It has also seen the company increase its suppliers' base as part of the program, which has enhanced the local value addition. If this trend continues, India will achieve the $ 30 billion mark in local production in the next few years. This would mean that India contributes to 26% of the global iPhone production for Apple, a very significant jump from the current contribution of 14%
Apple's record-breaking export figures reflect the positive effects of this incentive program. The statistics calculated on the freight on board (FOB) value suggest that the growth of Apple's sales is related to the production increase and the critical impact of government measures on industry development. The PLI scheme has enhanced the local manufacturing capacities, particularly in the final assembly operations, which have enhanced the production capacity.
In addition to production and export, Apple is working on expanding the retail presence on the Indian market, the second-biggest market for smartphones globally. According to the latest information, India currently ranks as the fifth largest market for Apple, and there are expectations of a 20 percent rise in local sales of iPhones in the current year. The company is now keen in expanding its market presence especially in the emerging markets moving to contain a shift in market share in China due to the re-emergence of local firm Huawei.
Apple has also tried to build its local ties in India as a part of its strategic plans. Of the total $12.8 billion worth of iPhone exports in 2024, 54% will be from Foxconn (Hon Hai), 29% from Tata Electronics, and 17% from Pegatron. Significantly, Pegatron was bought by Tata Group recently, which increases the role of local partners. The upcoming enhancements to the PLI scheme are expected to boost the production of other components, including printed circuit boards, camera modules, and others, which may further cement India's position in the global supply chain.