What do you get when you combine the world’s most valuable company with one of the fastest-growing smartphone markets? A record-breaking production of iPhones worth more than Rs 1 lakh crore in India in 2023!
That’s right, Apple, the tech giant behind the iconic iPhone, has doubled its output from the previous year and exported made-in-India iPhones worth Rs 65,000 crore to various countries in the January-December period. This is a remarkable feat for both Apple and India, as it shows how they have overcome the challenges and seized the opportunities in the global smartphone industry.
The Big Apple of India’s Eye
India is not just another market for Apple, it is a strategic one. With over 500 million smartphone users and a low penetration rate of around 35%, India is the second-largest smartphone market in the world and has a huge potential for growth and expansion. India is also a young and aspirational market, with a median age of 28 years and a rising middle class.
Apple has been eyeing India for a long time, but has faced several hurdles, such as high import duties, low affordability, and stiff competition from Chinese brands such as Xiaomi, Vivo, and Oppo. However, Apple has also seen some silver linings, such as a strong demand for its premium products, a loyal customer base, and a growing online and offline retail network.
The Made-in-India Revolution
Apple’s impressive production numbers in India are a result of its efforts to shift its supply chain from China to India, amid the US-China trade war and the Covid-19 pandemic. Apple has partnered with three contract manufacturers – Foxconn, Pegatron, and Wistron – to assemble its iPhones in India under the production-linked incentive (PLI) scheme, which offers incentives to boost local manufacturing and exports.
Apple produced and exported five iPhone models – the 11, 12, 13, 14, and 15 – in 2023. Foxconn was the leading manufacturer, contributing 68% of the total production, followed by Pegatron with 18% and Wistron with 14%. About 65% of the iPhones manufactured in India were exported to the US, Europe, and West Asia.
Apple’s production in India has not only helped it save on import duties and logistics costs, but also enabled it to diversify its supply chain and reduce its dependence on China. Apple is also building a large ecosystem of Indian suppliers, including a Tata Group unit, to support its production in India.
The Future is Bright for Apple and India
Apple’s production milestone in India is a win-win situation for both the company and the country. For Apple, it means more cost savings, more market access, and more customer satisfaction. For India, it means more jobs, more exports, and more innovation.
Apple is expected to continue its production ramp-up in India, as it aims to capture a larger share of the Indian smartphone market, which is projected to grow at a compound annual growth rate (CAGR) of 10.5% from 2020 to 2025. Apple is also likely to launch more India-specific products and services, such as Apple Pay, Apple Music, and Apple TV+, to cater to the diverse and dynamic needs of the Indian consumers.
Apple’s success story in India is a testament to its vision, strategy, and execution. It also shows how India can become a global hub for manufacturing and exporting high-end electronics, with the right policies and incentives. Apple’s India-made iPhones are not only a symbol of quality and innovation, but also a source of pride and inspiration for the country.
