Apple’s India operations have soared to over ₹2 lakh crore ($23.5 billion) in FY24, driven by a significant increase in iPhone production and strong domestic sales of MacBooks, iMacs, iPads, Watches, and AirPods.
This marks a substantial jump from ₹1.15 lakh crore the previous year, with company officials stating that Apple’s growth in production and exports is unmatched by any company in India over the last 50 years. Apple is now the largest global value chain (GVC) operating in India, and it is also the first GVC to shift a significant portion of its supply chain from China to India.
India’s contribution to Apple’s global production has doubled to 14% in FY24 from 7% in FY23, according to the latest Economic Survey. iPhones have played a crucial role in this growth, with exports valued at around ₹1.35 lakh crore ($15 billion) last fiscal year, based on official data.
Boost from Production-Linked Incentive (PLI) Scheme
Apple’s domestic sales in India amounted to approximately ₹68,000 crore ($8 billion) in FY24. Despite accounting for less than 6% of the Indian smartphone market, which is dominated by Android-based devices from brands like Vivo and Xiaomi, Apple’s share has steadily increased from 2% in FY18. India contributes less than 2% of Apple’s global revenue, which stood at $383 billion in FY23.
The company’s accelerated growth in India began in 2020 with the introduction of the government’s smartphone production-linked incentive (PLI) scheme. Apple started manufacturing iPhones in India in 2021, marking its first production venture outside China.
Since then, iPhone production in India has steadily increased, reaching ₹1.20 lakh crore in FY24 through its three contract manufacturers—Foxconn, Wistron, and Pegatron. Tata acquired Wistron’s India facility in late 2023. The government offers incentives based on the freight on board (FOB) value of the devices as they leave the factory, with market values 50-60% higher.
In FY24, Apple produced iPhones worth ₹1.80 lakh crore, with 75% of this production, valued at nearly ₹1.35 lakh crore, being exported to Europe, the US, West Asia, and other regions. Local sales accounted for the remaining ₹45,000 crore.
Experts suggest that local iPhone manufacturing has bolstered Apple’s sales across its product range in India, leading to a fivefold increase in revenue from ₹13,756 crore in FY20 to ₹68,000 crore in FY24, including sales of MacBooks, iMacs, iPads, Apple Watches, AirPods, and other accessories.
Surge in Apple Shipments
While export figures are not included in India’s revenue, Apple’s manufacturing growth in the country has created over 150,000 direct jobs since 2021. Foxconn operates Apple’s largest factory in India, employing 41,000 people.
Apple CEO Tim Cook highlighted the company’s success in India, noting that it had set “quarterly revenue records” in over two dozen countries and regions, including India, during the third-quarter earnings call in August. Apple’s impressive performance comes despite a 2% year-on-year decline in smartphone shipments in India during the June quarter, attributed to factors like a heatwave, seasonal slump, and reduced demand from the previous quarter, according to market tracker Counterpoint Research.
Cook’s visit to India in April 2023, where he met with Prime Minister Narendra Modi and launched Apple’s first two company-owned retail stores in Delhi and Mumbai, underscores the growing importance of the Indian market amid global geopolitical challenges. Cook expressed excitement about India’s potential and affirmed it as a major focus for the company during an earnings call in May.
