Apple Inc. plans to source 32 percent of its total iPhone production in India by the year 2026-27, after the end of the five-year, large-scale production-linked incentive (PLI) scheme for mobile devices. This translates to a production value of more than $34 billion if worldwide iPhone sales stay on track with the current 2023-24 fiscal year, reported Business Standard.
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Apple Targets 32% of Global iPhone Production from India by 2027, Expanding Manufacturing Efforts
Apple has had discussions with its suppliers and central and state governments in India over further local assembly operations. According to the estimates provided by Apple’s vendors, the freight-on-board (FOB) production value could amount to $9 billion for the first half of FY25. By the end of the fiscal year, India is expected to account for 17-18% of the company’s global iPhone production volume and approximately 14% of its production value.
In FY24, Apple assembled iPhones worth $14 billion in India, doubling its production efforts from previous years. This rapid expansion reflects the company’s focus on diversifying its supply chain beyond China. Of the $14 billion in iPhones assembled in India, around $10 billion worth of devices were exported, illustrating India’s growing role in Apple’s global operations. With tensions between Beijing and Washington swelling, India is emerging as an increasingly important lower-cost alternative in Apple’s plans to move away from dependence on China.
Local subsidies, the availability of a large skilled workforce, and the developing technology infrastructure enable Apple to scale up production in India. The strategy to increase its footprint in India also matches the long-term vision of the company as it aims to spread out manufacturing risks and view India as a destination to be a large manufacturing hub. With Apple following local manufacturing, India is going to play a very important role in the whole chain of Apple.
