Apple Inc. is poised to significantly expand its manufacturing operations in India, with plans to increase production to approximately $40 billion (approximately 3.32 lakh crore) over the next four to five years, according to sources cited by PTI. This ambitious move comes on the heels of the company’s successful attainment of a $7 billion production milestone in the previous fiscal year.
A government official, quoted by the news agency, revealed, “Apple has plans to increase production in India to over $40 billion in the next 4-5 years. It has crossed $7 billion in the last fiscal.”
Apple’s expansion in India is in line with its strategy to diversify production locations and reduce its reliance on manufacturing in China. The tech giant has been gradually scaling up its manufacturing operations in India and plans to commence the production of Airpods in the country next year.
While Apple’s commitment to expanding production in India is clear, the company has no immediate plans to manufacture iPads or laptops in the country. The government official stated, “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.”
Apple’s recent product launches in India have further solidified its presence in the market. On September 22, Apple unveiled the iPhone 15 series, which includes the iPhone 15, iPhone 15 Plus, iPhone 15 Pro, and iPhone 15 Pro Max, in India and other countries. Remarkably, for the first time, Apple made India-built iPhone 15 models available to customers worldwide on the same day as the global sales debut.
Industry insiders reported that the iPhone 15 series witnessed an impressive 100 percent growth in sales compared to the launch day of the iPhone 14 series. In the financial year ending on September 25, 2022, Apple’s global iPhone sales amounted to $191 billion, with an additional $38.36 billion generated from products in the wearable, home, and accessories segment.
According to market research firm Counterpoint Research, Apple holds a dominant position in the ultra-premium smartphone segment, defined by phones priced above Rs 45,000 apiece, boasting a 59 percent market share in the first quarter of 2023. India has emerged as one of the top five markets for the Cupertino-based company.
Recent reports also underscore Apple’s success in the Indian market. For the first time, the company outpaced its Korean rival Samsung in terms of smartphone export volumes from India. In the June quarter, Apple shipped 49 percent of the country’s total 12 million smartphone shipments, surpassing Samsung’s 45 percent share, as reported by the Economic Times. This surge in shipping volumes reflects Apple’s rapid expansion of local manufacturing capabilities in India.
Apple’s decision to ramp up production in India is not only a strategic move to diversify its manufacturing base but also a testament to the growing importance of the Indian market in the tech industry. As Apple continues to expand its footprint in India and strengthen its local manufacturing capabilities, it is poised to benefit from the country’s robust consumer demand and favorable business environment.
