Apple’s ‘Dil Maange More’: Wants to increase global iPhone production in India to 18% by 2025
It seems that Apple wants to place some big bets on its Indian factories, and the local, Indian companies that it has partnered up with. The tech giant wants to increase India's share in the global production of iPhones from 7% to 18% by 2025
It seems that Apple wants to place some big bets on its Indian factories, and the local, Indian companies that it has partnered up with. The tech giant wants to increase India's share in the global production of iPhones from 7% to 18% by 2025
Apple is really pushing to increase its organic presence in India. Apart from planning to open up more retail outlets in the country following the successful launch of the Apple Store in Saket, New Delhi and Mumbai’s BKC, the Cupertino-based tech giant is now planning to increase their production targets in India.
Apple currently manufactures certain iPhone models in India as part of its China Plus One plan, but it seems that the company intends to increase production there to reduce its dependence on the Chinese supply chain.
Apple recognises India’s emerging manufacturing prowess
According to a report by Bank of America, Apple aims to move over 18 per cent of its global iPhone production to India by 2025. Currently, Apple’s Indian factories makes only 7 per cent of all iPhones sold globally.
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The report highlights that Apple’s decision is driven by government incentives designed to attract more foreign companies to expand their operations in the country. Currently, Apple manufactures the iPhone 13, iPhone 12, and iPhone SE in India through partnerships with Foxconn and Pegatron.
The Bank of America report suggests that Apple may further expand its production capacity based on government schemes. It states, “Apple may shift more than 18 per cent of iPhone production to India by FY25. Targets under the PLI schemes may drive Apple to shift at least 18 per cent of its global iPhone production to India by FY25 (7 per cent in FY23, negligible pre-PLI). Apple’s share may expand further if larger scale incentivizes its vendors to also expand in India.”
PLI or Production Linked Incentive schemes will be key
The report, authored by Amish Shah, managing director and head of India research at Bank of America, emphasizes that increased production could benefit Apple and other technology brands by diversifying their supply chain portfolio.
Also read: iPhone made-in-India by Tata: Industry giant bags 5% of all 2023 global orders
However, major tech companies primarily focus on assembly in India, while the production of crucial components such as displays and chipsets still takes place elsewhere. This is mainly due to the challenges of localizing these components, which require significant capital expenditure and advanced technology. Consequently, the price of the finished products remains relatively consistent.
Nevertheless, the PLI scheme, aimed at attracting more foreign players, particularly tech giants, has the potential to boost India’s GDP. The report highlights that the PLI scheme for mobile phones is expected to play a significant role in helping India achieve its ambitious goals of tripling domestic production to $126 billion and achieving a five-fold increase in exports to $55 billion by FY2026.
Apple making a mark on Indian consumers
Apple has opened its first retail stores in Mumbai and Delhi earlier this year. Apart from being outlets for purchasing new iPhones and other Apple products, these stores also serve as service centres and venues for special sessions for customers, where they not only get to truly experience Apple’s products, but also how to get the best out of them.
These sessions, known as Today at Apple , focus on creating digital art with Apple products. Earlier this year, Apple organized its first physical TAF session in Delhi, followed by special TAF sessions at Apple Mumbai stores.
Apple also has plans to launch multiple new stores in India by 2025.
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