Apple's iPhone makes 62.5% of India’s smartphone exports, amounting to $5 billion

In a remarkable feat, Apple Inc. has witnessed a staggering year-on-year growth of 177% in the export of iPhones from India, reaching a value exceeding $5 billion in the initial seven months of the fiscal year 2024 (April–October). This substantial increase follows the California-based company's export of iPhones worth $1.8 billion during the same period in FY23.

For the entire fiscal year 2022–23, Apple's iPhone exports from India amounted to $5 billion, contributing significantly to the estimated $8 billion in total smartphone exports from the country during the same period. The latest figures indicate a substantial 61% growth compared to the corresponding period in 2022–23, where smartphone exports totaled $4.97 billion.

As Apple continues to expand its manufacturing operations in India under the production-linked incentive (PLI) scheme for mobile devices, iPhones have emerged as a dominant player in the export market. In the first seven months of FY24, iPhones accounted for over 62% of the total smartphone exports from India, up from 45% in FY23 and 22% in FY22.

Apple's involvement in large-scale exports from India commenced after its entry into smartphone manufacturing, aligned with the announcement of the Rs 38,645 crore ($4.66 billion) PLI scheme for mobile devices. Major Taiwanese companies, including Foxconn and Pegatron in Tamil Nadu and Wistron in Karnataka (recently acquired by Tata Electronics), contribute to the production of multiple iPhone models, such as iPhones 11, 12, 13, 14, and the latest iPhone 15.

Tata Electronics has recently become the first Indian company to enter Apple's ecosystem as an iPhone supplier. With plans to acquire Wistron for $125 million, the company aims to secure a 100% equity stake in Wistron's assembly lines located in Karnataka.

India's smartphone exports have witnessed a substantial boost, doubling over the fiscal year 2022 to surpass $11.1 billion. In the first seven months of the current fiscal year, smartphone exports have already reached 72% of the previous year's total.

The success of smartphones in India has been attributed to the government's PLI scheme, catapulting the country to the position of the second-largest mobile phone manufacturing country globally, after China. This initiative aligns with India's China-Plus-One strategy, leveraging geopolitical tensions to attract companies manufacturing in China and encourage them to shift operations to India.

If Apple's commitments under the PLI scheme materialize, projections indicate that nearly 20% of iPhone production could relocate to India by FY27, a substantial increase from the 7% recorded in FY23. This shift could result in a total production value of $40 billion in five years, with a majority—ranging from 60 to 70%—dedicated to exports.