Apple, the renowned technology giant, is expected to ramp up its iPhone manufacturing in India, aiming to produce around 18% of iPhones locally by the fiscal year 2025. This move is driven by the Indian government’s production-linked incentive (PLI) scheme for mobile phones, which provides incentives to manufacturers to produce devices in the country. As a result, Apple may consider shifting a significant portion of its global iPhone production to India within the next few years.
According to a report, the PLI scheme could incentivize Apple to expand its manufacturing capabilities in India. The scheme’s objective is to boost domestic production, create employment opportunities, and position India as a global manufacturing hub for smartphones. By taking advantage of this initiative, Apple can tap into the vast Indian market while simultaneously benefiting from the incentives provided by the government.
If Apple does indeed shift at least 18% of its global iPhone production to India by FY25, it would mark a significant milestone in the company’s manufacturing strategy. Currently, Apple predominantly relies on China for its iPhone production. However, diversifying its manufacturing base has become a strategic priority for the tech giant, given geopolitical uncertainties and the need to mitigate risks associated with relying heavily on a single country.
India has emerged as an attractive destination for smartphone manufacturing due to its vast consumer market, improving infrastructure, and the availability of skilled labor at relatively lower costs. The PLI scheme further enhances India’s appeal by offering financial incentives based on the incremental sales of locally manufactured smartphones over a period of five years.
The report indicates that Apple’s decision to increase its manufacturing in India could have a ripple effect on its vendors and suppliers. If Apple scales up its operations in the country, it could incentivize its ecosystem of vendors and suppliers to expand their presence in India as well. This, in turn, would create a robust manufacturing ecosystem, boosting job creation and ancillary industries in the country.
The expansion of iPhone manufacturing in India aligns with Apple’s broader goals of diversifying its supply chain and reducing dependence on any single market. The company has already made significant investments in India, including the establishment of an iPhone assembly plant and the opening of retail stores across the country.
Furthermore, Apple has been exploring ways to enhance its local manufacturing capabilities and increase the localization of components. By expanding its manufacturing operations in India, Apple can not only cater to the growing demand in the domestic market but also leverage India as an export hub to serve other global markets.
Apple’s move to bolster iPhone manufacturing in India could also lead to job creation and technology transfer, fostering skill development and innovation within the country. It presents an opportunity for India to further strengthen its position in the global electronics manufacturing sector and attract more investments from other technology companies.
It is worth noting that Apple has been gradually increasing its focus on the Indian market, recognizing its immense potential. The company has been introducing initiatives such as affordable pricing, localized features, and increased investments in marketing and distribution channels to capture a larger market share in the country.
While Apple’s plans to manufacture 18% of iPhones in India by FY25 are still projections, they indicate a growing shift in the company’s manufacturing strategy. As the Indian smartphone market continues to expand, Apple is positioning itself to capitalize on the opportunities presented by the PLI scheme and the country’s favorable business environment.
As Apple explores new avenues for growth and diversification, its increased manufacturing presence in India could bring about substantial benefits for both the company and the Indian economy. The coming years will provide a clearer picture of how Apple’s manufacturing plans in India unfold, with potential implications for the global smartphone industry and India’s position as a manufacturing powerhouse.
