Sunday, April 14, 2024

Apple to boost India manufacturing to $40 billion, a 5x incr

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Apple, the global technology giant, plans to intensify its manufacturing operations in India. The company aims to amplify its production value five times to a whopping $40 billion (around 3.32 lakh crore) over the next 4 to 5 years, according to government sources quoted by PTI. This fits perfectly with the Indian government’s ambitious ‘Make in India’ initiative which promotes foreign investment in the country’s manufacturing sector. 

Apple’s Manufacturing Growth Projection

“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,” a government official said.

Apple’s Current Manufacturing Presence in India

Apple is already a significant player in the Indian manufacturing sector, with their iPhones being produced in the country. Apart from this, it is worth noting the company’s plans to start manufacturing Airpods from the subsequent year. However, for those hoping for locally manufactured iPads or laptops, the news isn’t all that bright as the company official pointed out: 

“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,” the officer disclosed.

Apple

Impact of iPhone 15 Series Launch in India

Besides the manufacturing plans, Apple recently made a splashing debut with the introduction of the iPhone 15 series including iPhone 15, iPhone 15 Plus, iPhone 15 Pro, and iPhone 15 Pro Max in India and other parts of the world. For the first time, India-built iPhone 15 models were globally available. This seems to have given a strong thrust to Apple’s sales with: 

  • A 100% growth in the sales of the iPhone 15 series, compared to the iPhone 14 series, on the launch day itself.
  • A global sale of iPhones reached a whopping $191 billion and products from the wearable, home, and accessories segment touching $38.36 billion in the financial year ended on September 25, 2022.

Market Dominance in India

Market research firm, Counterpoint Research, revealed that: 

Apple led the ultra-premium segment, with phones priced above Rs 45,000 apiece, with 59 per cent market share in the first quarter of 2023 and India is among the top-five markets for the company now.

Last week’s report also highlighted that Apple trumped its Korean rival Samsung in the smartphone export volumes from India for the first time. With 49% of the country’s total 12 million shipments in the June quarter, this clearly highlights the aggressive expansion of local manufacturing by the US-based company in India. 

In comparison: 

  1. Samsung’s share of export volumes fell from 50 per cent in Q1 2023 to 45 per cent in Q2 2023.
  2. The sharp decline from Samsung’s domination with 50 per cent in Q2 2022 is a significant disruption in the market dynamics.

Ever since Apple initiated manufacturing in India in 2017, the company’s impressive growth has been propelled by an increase in production by three of its contract manufacturers – Foxconn, Wistron, and Pegatron – starting from the second half of 2022 with the production of iPhone 14. All three iPhone manufacturers participate in the Centre’s production-linked incentive scheme for smartphone manufacturing.

India’s manufacturing will look even brighter with Apple’s Investment

  1. Advancement of Local Businesses: This will trigger the growth of local businesses, particularly those engaged in Apple’s supply chain.
  2. Skilling the Workforce: This massive enterprise could lead to an upsurge in skill development programs, equipping the Indian workforce with skills necessary for cutting-edge tech manufacturing. It might well be an opportunity for India’s workforce to step up on the global stage.
  3. Adoption of Advanced Technologies: It also means integrating newer technologies, driving the Indian manufacturing sector onto a more futuristic trajectory.

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