PLI Success Story: Apple iPhones Exports Hit 4X Previous Numbers, India's Smart Phone Exports Nearly Double

India's iPhone exports hit over $5 billion in FY23, almost quadrupling from the previous year. Thanks to increased local production from suppliers, Apple has been able to focus on making the country a manufacturing hub for its premium devices.

Apple iPhone has crossed $5-billion export mark from India, marking the company's remarkable speed in scaling up its manufacturing operations within a couple of years, according to experts.

In a landmark achievement, India's total smartphone exports surpassed $10 billion for the first time in a financial year. Trade and industry data show that Apple-backed the production, with Samsung contributing around $3.5-4 billion in FY23.

India has begun to export smartphones to developed markets like the UK, Italy, France, the Middle East, Japan, Germany, and Russia, according to industry executives. Despite inquiries made to both Apple and Samsung about export data, up-to-date information was not provided at the time of publication.

Apple is increasingly focused on India as a manufacturing hub to meet the growing local demand for premium devices, in addition to exporting products.

India's contribution to iPhone production has risen from under 1% in 2020 to 5%. While China is still the largest producer, India follows at second place.

Apple will launch its first two company-owned retail stores in Mumbai and Delhi on April 18 and 20 respectively, following the opening of their online store in 2020.

Apple CEO, Tim Cook, may be present for the launch of Apple stores in India, indicating the significance India holds in the company's future plans. This comes as Apple is striving to diversify its manufacturing base in light of ongoing geopolitical tensions, moving away from its current reliance on China.

During his trip to India, Cook is set to meet with important leaders such as Prime Minister Narendra Modi to discuss the company's emphasis on manufacturing iPhones in India. Additionally, Apple is considering beginning production of AirPods in the country.

Foxconn, Wistron, and Pegatron, based in Taiwan, manufacture and export iPhone models 12 to 14 from their plants located in Tamil Nadu and Karnataka.

Estimates suggest that iPhone exports from India have surged to around Rs 40,000 crore in FY23 from Rs 11,000 crore in FY 21-22, with the largest-ever monthly exports of iPhones occurring in March 2023, surpassing $1 billion. The $1 billion exports mark was first achieved by the company in December 2022.

Apple has played a major part in the increased mobile phone exports from India, exceeding $10 billion in FY23 from $5.8 billion in the previous fiscal year. Samsung, on the other hand, has been slower with its export growth, exporting only around $3 billion in FY22, reported officials and industry executives.

Apple's three contract manufacturers and Samsung have been approved to receive incentives under the PLI scheme for smartphone production, subject to regular submission of production, export, and employment data to the government.

Industry experts credit the success of the PLI scheme for exceeding $10 billion in exports, showing the strong relationship between the government and industry. To continue growth,they emphasizes the importance of competitiveness with lower input tariffs, flexible labor laws, and trade facilitation.

India's mobile phone industry is rapidly growing with the help of the PLI scheme, an initiative aimed at attracting electronics manufacturers away from China and Vietnam. As a result, mobile phones have become the largest contributor to electronics exports in India.

Furthermore, Apple is planning to move 25% of its iPhone production to India by 2025, as stated in a JP Morgan report. Government officials expect that at least 20% of iPhone production will be moved to India within the next few years.

The initial PLI scheme, worth Rs 39,000 crore, was successful and led to the government introducing 14 more such schemes in various sectors including automobile, telecom, pharmaceuticals, metals, and textiles among others.