Apple achieved a significant surge in Indian iPhone production, surpassing Rs 1 lakh crore, with Rs 65,000 crore worth of iPhones manufactured in India being exported
In the previous year, Apple significantly increased its iPhone production in India, surpassing a value of Rs 1 lakh crore. The escalated output compared to the preceding year, with Rs 65,000 crore worth of iPhones manufactured in India being exported during the January-December timeframe, according to a report by the Economic Times.
The Rs 1 lakh crore figure represents the freight on board (FOB) value when the devices depart the factory, as per sources cited in the report. The actual market value of the production may range from Rs 1.5 lakh crore to Rs 1.7 lakh crore, accounting for taxes and dealer margins in different countries. FOB denotes the cost of a product at the factory's exit, to which additional charges such as taxes and various fees are subsequently applied.
Apple's production results have surpassed the set targets outlined in the production-linked incentive (PLI) scheme. This may potentially enable the company's contract manufacturers to receive additional residual incentives, contingent on the overall production expenditure, as indicated by sources.
The production-linked incentive is tied to the FOB value of a device, and this accomplishment is a triumph for the government's ongoing efforts to redirect supply chains away from China.
Apple, perhaps the most significant phone manufacturer in India in terms of value, has seen remarkable growth in its market share, rising from 2 per cent in FY18 to 6 per cent in FY23. Contrastingly, Samsung's market share has declined from 26 per cent to 20 per cent over the same five-year period, as reported by Counterpoint. During this time frame, Apple's India business has experienced a substantial increase, reaching Rs 49,322 crore from Rs 13,097 crore, while Samsung's mobile revenues have expanded from Rs 37,349 crore to Rs 70,292 crore.