SUMMARY
Apple Inc reportedly wants to capture 32% of global iPhone production volume and 26% of its value in India by 2026-27
For the first half of FY25, Apple’s suppliers expect freight on board (FOB) production value of $9 billion
Meanwhile, it was reported earlier this month that the tech giant has set up a new subsidiary in India, Apple Operations India, which will focus on research, design, testing and providing support to third-party manufacturers.
Apple Inc reportedly wants to capture 32% of global iPhone production volume and 26% of its value in India between 2026 and 2027.
According to a Business Standard report, this could translate into a production value of over $34 billion, assuming global iPhone sales remain consistent with 2023-24 (FY24) levels.
The report added that discussions took place between Apple and its suppliers and central and state governments over the assembly of the devices in India.
For the first half of FY25, Apple’s suppliers expect freight on board (FOB) production value of $9 billion. By the end of the fiscal year, India is expected to contribute 17-18% of global iPhone production volume and 14% of its value.
In FY24, 12-14% of global iPhone production volume moved to India, contributing over 10% in value. For FY25, Apple’s suppliers forecast a production value of $18 billion (estimated market value of approximately $27 billion). Market value includes sales, distribution costs and dealer margins, while FOB reflects the value upon shipment.
In FY24, iPhone production in India reached $14 billion. This shift from China represents a significant gain for India as iPhones contributed 51% of Apple Inc’s total global revenue, reaching $391 billion for the fiscal year ending September 30, 2024.
Also in FY24, Apple’s iPhone global revenue of $201 billion exceeded Tata Group’s total revenue of $165 billion by 21% and was 67% higher than Reliance Industries’ $119 billion.
Apple originally planned to shift 10% of production to India in the fifth year of the PLI scheme, but Apple has already surpassed this target in the third year of the scheme, with forecasts suggesting that 25-30% of iPhone production could take place in India in 2026-2027. according to JP Morgan.
The development comes at a time when Apple has been actively diversifying its manufacturing outside of China, amid geopolitical tensions between Beijing and Washington DC. This shift towards India also comes on the back of the hefty production-linked incentives (PLIs) and other measures offered by the Centre.
This was reported earlier this month technology giant has establishment of a new subsidiary in IndiaApple Operations India, which will focus on research, design, testing and support to third-party manufacturers.
This also marks the company’s first direct presence in the country.
Recently, Apple announced plans to begin production of the iPhone 17 basic model in India, in collaboration with a local factory for this production.
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