A substantial move by Apple Inc. is poised to significantly enhance its production capabilities within India. The tech giant has unveiled ambitious plans to expand its investment in the country, with a commitment to inject approximately $40 billion over the course of the next four to five years.
Government sources, who preferred to stay anonymous, have revealed Apple's ambitious expansion plan. They indicated that Apple achieved a significant milestone by exceeding $7 billion in production during the previous fiscal year.
The sources also disclosed that Apple's expansion in India will extend beyond its current iPhone manufacturing. While iPhones have been made in India, Apple is gearing up to commence production of Airpods in the upcoming year. However, there are currently no immediate plans to manufacture iPads or laptops within the country.
“They don't have any plans to participate in IT hardware PLI. They may come at a later stage but as of now their focus is to scale up existing production levels,” PTI quoted the official as saying.
Apple's commitment to the Indian market has become increasingly apparent through its recent product launches. On September 22, 2023, Apple unveiled its much-anticipated iPhone 15 series, which included the iPhone 15, iPhone 15 Plus, iPhone 15 Pro, and iPhone 15 Pro Max. Notably, these India-built iPhone 15 models hit the shelves in India and other global markets simultaneously, emphasizing India's pivotal role in Apple's worldwide production and distribution network.
Business Today, citing industry insiders, reported a remarkable surge in sales during the launch of the iPhone 15 series in India, with a 100 percent increase compared to the previous iPhone 14 series launch. For the fiscal year ending on September 25, 2022, Apple posted impressive financial results, with global iPhone sales reaching a staggering $191 billion, while the wearable, home, and accessories segment contributed $38.36 billion to the company's revenues.
Market research firm Counterpoint Research underscored Apple's dominance in India's premium smartphone market segment, encompassing phones priced above Rs 45,000 ($541). During the first quarter of 2023, Apple secured an impressive 59 percent market share in this category, reaffirming India's position as one of Apple's top five global markets.
Apple's rapid growth within India's manufacturing and export landscape was further highlighted as it overtook Samsung to become the leading exporter of smartphones from the country. According to a report by the Economic Times, Apple accounted for 49 percent of India's total smartphone shipments in the June quarter, surpassing Samsung's 45 percent share. This achievement underscores Apple's substantial investment in regional production and exports from India.
Image source: Reuters