June 17, 2024
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Apple To Shift 18% Of Global iPhone Production To India By 2025: Report

According to a report from Bank of America, Apple is considering shifting 18% of its global iPhone production to India by 2025. This move is attributed to the Indian government’s production-linked incentive scheme for mobile phones, which encourages companies like Apple and its vendors to expand their operations in the country. The scheme aims to help India triple its domestic production to $126 billion and achieve five-fold growth in exports to $55 billion by FY26.

Earlier reports indicated that Apple had increased its iPhone production in India from 1% in 2021 to 7% in 2023. It was also mentioned that Apple’s goal is to manufacture 25% of iPhones sold globally in India by 2025.

The report from Bank of America highlighted that mobile phones account for 21.5% of India’s domestic electronics demand, which is growing at a rate of 15% compound annual growth rate (CAGR). In FY2023, India’s electronic goods consumption reached $158 billion, with imports accounting for a significant portion. In the same year, electronics imports totaled $77 billion, representing 20% of the country’s trade deficit.

The report mentioned that localizing 70% of the mobile phone’s cost, which includes the display, memory, and semiconductors, poses challenges as it requires significant capital expenditure and advanced technology.

The Bank of America report also noted that the PLI scheme, worth INR 38,000 crore, has contributed to increasing the export mix in local production. As a result, electronic exports have grown from 16% to 25% year-on-year, positioning India as a reliable global supply chain option for mobile phones and electronics manufacturers.

In addition to its manufacturing plans, Apple recently opened its first two exclusive retail stores in Mumbai and Delhi, with CEO Tim Cook personally inaugurating them in April. As part of its expansion strategy, Apple intends to open three more stores in India by 2027.

Picture Courtesy: Google/images are subject to copyright

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