PLI scheme: Apple to manufacture iPhone worth Rs 47,000 crore in India this year

Apple’s contract manufacturers – Pegatron, Wistron and Foxconn – are expected to manufacture iPhones worth Rs 47,000 crore in India in fiscal year 2022 – 2023. Of this figure, Wistron is expected to manufacture iPhones worth Rs 27,000 crore, while Pegatron and Foxconn are expected to manufacture iPhones worth Rs 12,000 crore and Rs 8,000 crore respectively.
According to a report by The Economic Times, this figure is almost five times more than Rs 10,000 crore worth of iPhones that the three companies manufactured in the fiscal year 2021 – 2022. It is also twice the minimum requirement that the three companies require to get benefits in the second year under the government’s Production Linked Incentive (PLI) scheme. Together, the three manufacturers were required to manufacture iPhone worth Rs 8,000 crore to qualify for the benefits in the second year of the scheme.

Furthermore, the report quoting analysts said that the company is expected to ship around seven million iPhone units this year, which translates into a 5.5 percent market share. This growth is an outcome of more affordable financing schemes, and higher local production among other things.

Interestingly, Apple has a market share of just 1.5 percent in India and over 60 percent of the iPhones produced in India will be used for exports in other markets across the globe, the publication wrote.

Apple began manufacturing iPhones in India with the iPhone SE back in 2017. Over the years, it has added the iPhone 11 and the iPhone 12 series smartphones to the list. More recently, the company started manufacturing the iPhone 13 series smartphones in the country.

An older report states that two of the company’s three vendors – Foxconn and Wistron manufactured iPhones at a combined worth of Rs 8,000 crore in the financial year 2021 – 2022. Due to this, the two companies are eligible to get six percent of the PLI from the government as a part of the scheme. However, the two companies have already exported iPhones worth Rs 10,000 crore in the past fiscal year 2021 – 2022. This figure is required by the two companies to be eligible for the PLI scheme in the first year.

Faqs

Buoyed on continued surge in demand for its iPhones, Macs and iPads, the local unit of Cupertino-based company is set to cross Rs 30,000 crore revenue mark in the current fiscal. While last year, its operating revenue in India grew by a whopping 68 per cent – highest jump in nine years – to Rs 22,845 crore.15-Jan-2022

Apple has started trial production of its flagship iPhone 13 in the Foxconn plant near Chennai as the US technology major readies to make almost all its top-selling smartphone models in the country, two industry executives said.22-Dec-2021

Apple had revenues of $3 billion in India in fiscal 2020-21, registering a growth of 68%, though a large part of this turnover came from products which had been imported (largely China) and not made in the country.01-Jan-2022

US Smartphone Shipments Market Share (%)
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46%
40%
65%
55%

Apple is investing significantly in India to expand its presence in the country, and supports around one million jobs in the country across its workforce, apps and supplier partners, the company’s Vice-President (Product Operations) Priya Balasubramaniam said on Thursday.18-Nov-2021

While Apple closed CY 2021 with a 4.4 per cent market share of the Indian smartphone market, a significant jump of 2.4 per cent share in CY 2020, Apple is anticipated to capture a 5.5 per cent market share in CY 2022.03-Feb-2022

Conclusion

Apple is expected to manufacture iPhones worth Rs 47,000 crore in India in fiscal year 2022-2023. Of this figure, Wistron is expected to manufacture iPhones worth Rs 27,000 crore, while Pegatron and Foxconn are expected to manufacture iPhones worth Rs 12,000 crore and Rs