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Tuesday, April 16, 2024

Apple Plans to Increase Production in India Fivefold to $40 Billion in the Next 5 Years, Says Report

Over the next 4 to 5 years, Apple Inc. intends to significantly boost its production in India, aiming to reach approximately $40 billion. Government sources, as cited by PTI, revealed this plan. Notably, in the past fiscal year, the company had already surpassed the $7 billion production milestone.

According to a government official cited by the news agency, Apple aims to boost its production in India to more than $40 billion in the next 4-5 years, surpassing $7 billion in the previous fiscal year.

Apple is currently making iPhones in India and will begin producing Airpods next year. The officer mentioned that Apple doesn’t have any immediate intentions to manufacture iPads or laptops in India.

They don’t currently plan to join the IT hardware PLI. They might consider it later, but right now, their main goal is to increase their current production.

As more and more people in India ordered the iPhone 15 series, and as Apple started sending more iPhones from India to other countries, the world’s biggest company is thinking about making five times as many iPhones in India.

Industry insiders say that on the day the iPhone 15 came out, it sold twice as much as the iPhone 14 did on its launch day. In the past year, Apple sold iPhones worth $191 billion, and in the same time frame, they also sold products like wearables, home items, and accessories, which brought in $38.36 billion

In the first quarter of 2023, Apple was the top player in India’s expensive phone market, which includes phones costing more than Rs 45,000 each. They had a whopping 59% of this market. India has become one of Apple’s top-five markets.

Last week, there was a report that said Apple sold more smartphones in India than Samsung for the first time. In the June quarter, Apple sold 49% of the 12 million smartphones shipped in the country, while Samsung sold 45%. This shows that Apple is making more phones in India and selling them quickly.

According to industry data, Apple’s sales of iPhones to other countries grew very quickly in the past year. In the second quarter of 2022, only 9% of the 8 million smartphones shipped abroad were iPhones. But in the second quarter of 2023, almost half of all smartphones sent to other countries were iPhones.

In the first three months of this year (January to March 2023), India sold 13 million smartphones to other countries. But in the next three months (April to June 2023), this number went down to 12 million. In the same time frame in 2022, India sold 10 million smartphones in the first quarter (January to March) and 8 million in the second quarter (April to June).

Samsung’s dominance in the Indian export market has seen a notable decline, with its export volume share dropping from 50 percent in Q1 2023 to 45 percent in Q2 2023. This significant decrease from the same period in the previous year, Q2 2022, is a cause for concern given the company’s historical stronghold on the market.

Apple began making iPhones in India in 2017. In the latter part of 2022, they made even more iPhones. They did this with the help of three companies: Foxconn, Wistron, and Pegatron. They started making the iPhone 14 for the Indian market and to send abroad. This boosted Apple’s performance.

The Centre’s production-linked incentive scheme for smartphone manufacturing includes all three iPhone manufacturers.

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