Apple has reached a significant milestone with the manufacture of the iPhone by surpassing $10 billion in Freight-on-Board (FOB) value in the first seven months of the fiscal year 2024–25 in its production journey in India.This marks an impressive 37% increase from the same period in the previous year, further setting India’s position as a significant hub for Apple’s global supply chain.
Steady Growth and Milestone Achievement
Apple’s progress in India has been remarkable, with 70% of the iPhone production worth approximately $7 billion being exported to global markets. The remaining $3 billion serves the domestic Indian market. FOB value is a measure of the price of goods as they leave the factory, excluding shipping and other costs. The production value of $10 billion translates to an estimated $15 billion in market value after factoring in distribution, sales, and logistical expenses.
In October 2024, Apple reached an unprecedented production level by crossing the $2 billion per month mark for the first time in India which tends to be a major feat for the company.
Contribution of Manufacturing Partners and PLI Scheme
The growth in Apple’s production can be largely attributed to the Indian government’s Production-Linked Incentive (PLI) scheme, which has provided strong incentives for manufacturing companies to establish large-scale facilities in India. Apple’s three Taiwanese suppliers Foxconn, Pegatron, and Wistron (now Tata Electronics) have been key drivers in this expansion.
Foxconn, Apple’s largest supplier, played a crucial role by contributing 56% to the $10 billion FOB value. Tata Electronics, which saw a significant increase in production after acquiring Wistron, accounted for 30% of the total production.
Apple’s Future Projections and Ambitions
Looking ahead, Apple has ambitious targets for FY25, projecting a total of $18 billion in iPhone production. This would raise the estimated market value to $25 billion, further enhancing India’s role in Apple’s global manufacturing strategy. While Apple has yet to comment on these figures, the numbers highlight the significant strides the company has made in India.
India’s Growing Role as a Global Manufacturing Hub
Apple’s increasing production in India reveal the country’s success in positioning itself as a significant player in the global manufacturing landscape, especially for high-value tech products. The PLI scheme has been instrumental in attracting foreign investments, creating job opportunities, and strengthening local supply chains within India.
