Apple’s operations in India saw a significant increase in value to over Rs 2 trillion in FY24, a notable rise from Rs 1.15 trillion in the previous year. This growth was driven by a surge in iPhone production and the domestic sales of MacBooks, iMacs, iPads, Watches, and AirPods, according to a report by The Economic Times.
According to officials, Apple has demonstrated the most rapid growth in production and exports among all companies in India over the past five decades. This has positioned the Cupertino-based tech giant as the largest global value chain (GVC) within the country. Apple is also the first GVC in India to swiftly transfer parts of its supply chain away from China, the report said.
The recent Economic Survey highlights that India accounts for around 14 per cent of Apple’s total production, solidifying its role as a pivotal hub for the company’s global exports. This marks a significant increase from the 7 per cent contribution in FY23. Calculations based on official data reveal that iPhones dominated the export figures, with devices valued at around Rs 1.35 trillion being shipped abroad in the last financial year.
Regarding domestic sales, Apple products generated around Rs 68,000 crore in FY24, according to the calculations. In contrast, the value of exported iPhones stood at Rs 66,000 crore in FY23, the report said.
Rise in market share in India
While Apple’s market share in India is currently under 6 per cent, it has been on an upward trajectory from just 2 per cent in FY18, despite the market being primarily dominated by Android devices from Chinese brands such as Vivo and Xiaomi. Additionally, India’s revenue contribution to Apple’s global earnings was less than 2 per cent of the $383 billion generated in FY23. Apple’s financial year runs from October to September, with the financial year 2024 results to be disclosed in October.
Since 2020, Apple has experienced significant growth in India following the government’s introduction of the smartphone production-linked incentive (PLI) scheme. Apple began manufacturing iPhones in India in 2021, marking its first production effort outside of China.
iPhone production in India has consistently increased through its partnerships with Foxconn, Wistron, and Pegatron, amounting to a value of Rs 1.20 trillion in FY24.
iPhone’s FY24 production growth
Considering the market value, Apple’s iPhone production in FY24 was valued at Rs 1.80 trillion. Approximately 75 per cent of this production, equating to Rs 1.35 trillion, was exported to markets in Europe, the US, West Asia, and other regions. The remaining Rs 45,000 crore was sold domestically, the report said.
Industry experts suggest that local iPhone manufacturing has bolstered Apple’s sales in India, not only for iPhones but also across its range of products. In FY24, Apple’s revenue in India surged to Rs 68,000 crore, a fivefold increase from Rs 13,756 crore in FY20, including MacBooks, iMacs, iPads, Apple Watches, AirPods, and other accessories.
First Published: Aug 14 2024 | 11:13 AM IST
