India’s iPhone exports up, could hit Rs 1 lakh crore in FY25

Export of iPhones made in India scaled nearly Rs 9,000 crore in April 2024, marking an almost-double surge year on year. Exports are estimated to reach the Rs 1 lakh crore mark in the fiscal year 2024-’25, or FY25, based on the rate of growth.

Apple India, in fact, broke two records in FY24. The company achieved total production worth Rs 1.2 lakh crore, while exports touched the Rs 9,000-crore mark. The export figure factors in Freight On Board (FOB) expenses of the iPhone at the time it exits factory, while retail price of the gadget is at least 60 per cent more.

India is currently the only other hub where iPhones are manufactured apart from China, and most of the gadgets that Apple makes in the country are exported. Overall, India makes around 14 to 15 per cent of iPhones as of now and experts predict by 2026 the volume of production in the country should increase to nearly 26 per cent of total iPhones manufactured.

Apple India’s growth can be gauged from the fact that the annual production of the iPhone was around Rs 3,000 crore and exports negligible in FY21. Surge in demand saw production rising to Rs 16,000 crore only a year later.

Manufacturers having a contract with Apple to make iPhones in India are the Taiwan-based companies Foxconn and Pegatron, and the Tata-owned Wistron. Of these, Foxconn is the world’s biggest contract manufacturer and the main exporter of India-made iPhones, contributing more than 70 per cent of the finished products. Wistron manufactures 27 per cent iPhones in India while Pegatron make the remaining 3 per cent. All three firms draw benefits of the government’s Production-Linked Incentive (PLI) Scheme.

Apple India apart, contract manufacturers of South Korean giant Samsung and the Indian brand Dixon Technologies have successfully met PLI targets, say media reports. India is currently the world’s second-largest smartphone market.