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June 12, 2024

India’s iPhone Exports Surge to $2 Billion in April-May

In a significant push towards enhancing its export footprint, Apple Inc has achieved remarkable success in exporting iPhones from India, recording over $2 billion in exports during April and May of the current financial year (FY25). This impressive figure represents 81% of India’s total iPhone production worth $2.6 billion for the same period.

The technology giant’s performance in May mirrored its success in April, with each month seeing over $1 billion in iPhone exports. Despite this noteworthy achievement, Apple Inc declined to provide a comment on the matter.

Under the production-linked incentive (PLI) scheme, the commitment for Apple’s three vendors in FY25 is to reach a production value of $10.2 billion, which includes exports. Remarkably, 25% of this target has been achieved within the first two months. Foxconn Hon Hai, Apple’s leading vendor, has been the major contributor, accounting for 65% of the total exports. Wistron follows with 24%, and Pegatron contributes the remaining 11%. All three vendors are active participants in the smartphone PLI scheme, now in its fourth year of a five-year duration.

Apple’s extensive global value chain (GVC) has allowed it to scale production and exports rapidly. In FY24, Apple concluded with a total iPhone production value of $14 billion in free-on-board (FOB) terms, with a market value approximating $22 billion, considering logistics and local taxation. Out of this, $10 billion worth of iPhones were exported, constituting 70% of the FOB value for that year’s production.

The surge in iPhone exports has also propelled India’s overall mobile phone exports, which reached $15.5 billion in FY24, marking a substantial 40% increase from the $11.1 billion recorded in FY23. This boost has elevated electronics exports, led by mobile phones, from the sixth position in FY23, with an export value of $23.6 billion, to the fifth in FY24, recording $29.1 billion — a 23% year-over-year increase.

In FY24, iPhone exports constituted a significant portion of India’s electronics exports, making up 35% of the total electronics exports and 65% of the total mobile phone exports. Apple has consistently expanded its production and export operations in India over the past three years, managing to exceed $1 billion in monthly exports even during non-peak periods such as April and May. Typically, Apple’s production for the Indian market peaks ahead of the festive season between July and October, with new iPhone models usually launching in September. Exports then peak from October to December as Indian factories ramp up to supply Western markets for Black Friday, Thanksgiving, and the Christmas and New Year holidays.

In summary, Apple Inc’s strategic focus on boosting iPhone production and exports from India is yielding impressive results. The substantial figures achieved in the early months of FY25 underscore the company’s commitment to leveraging India’s manufacturing capabilities under the PLI scheme, contributing significantly to the country’s electronics export landscape. As Apple continues to expand its operations, it is poised to play a pivotal role in bolstering India’s position in the global electronics export market.

Read more Business related news on R9 News
Jhumpa Lahiri

Jhumpa Lahiri

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