Over approximately three years, India has become a significant hub for Apple in terms of producing iPhones. As an example, in the fiscal year 2024, the company manufactured smartphones valued at $14 billion, which was twice the amount produced in the previous fiscal year. This indicates that one out of every seven iPhones worldwide is currently assembled in India.
Based on reports, more than 70% of the $14-billion production has been shipped out of India to various countries in Europe, the US, and Asia.
In the fiscal year of 2024, Apple recorded an average production of over $1 billion per month, a significant increase from the previous year’s average of $620 million per month in FY23.
Apple’s three vendors – Foxconn Hon Hai, Pegatron, and Wistron (now under Tata group) – located in Tamil Nadu and Karnataka (owned by the Tata group) have accomplished this production.
Based on data and information provided by the vendors, it can be seen that Foxconn Hon Hai has contributed the majority of the total production, accounting for over 67%. The remaining 33% has been contributed by a combination of Pegatron and Wistron.
The government’s smartphone production-linked incentive (PLI) scheme has attracted the participation of three companies. This particular PLI scheme has been deemed remarkably successful among the 14 existing schemes, achieving incremental production in comparison to the base year of 2019-20, as well as contributing to exports, job opportunities, and investments.
The PLI scheme mandates that each of the three Apple vendors must invest `1,000 crore within five years. Currently, all three vendors are surpassing their initial investment timelines.
According to sources, Foxconn Hon Hai has met the eligibility criteria for receiving the PLI incentive in FY24, and it is believed that Pegatron and Wistron have also surpassed the minimum production requirement of Rs 15,000 crore for the fiscal year. As a result, all three companies are expected to meet the qualifications for PLI individually in the third year, with Foxconn likely exceeding the threshold.
Apart from the trio of Apple’s vendors, Samsung and Bharat FIH, which is also a subsidiary of Foxconn, are major players in the smartphone PLI initiative.
Companies from India such as Lava, Bhagwati (Micromax), Padget Electronics (Dixon), UTL Neolyncs, and Optiemus Electronics are also involved in this program.
Up until now, Apple’s suppliers and Samsung have been at the forefront of production in the global corporate sector.
The PLI scheme, which commenced in 2020, will conclude in 2026. During this period, businesses were given the freedom to select any five consecutive years.
According to Ashwini Vaishnaw, the Communications and IT minister, major global electronics companies are planning to establish large campuses in India after establishing their manufacturing facilities in the country. These campuses will consist of multiple factories dedicated to producing a variety of their products.
