Apple has raised its iPhone production in India from 1 per cent in 2021 to 7 per cent in 2023.
The report from Bank of America added that mobile phones are 21.5 per cent of India’s electronics domestic demand.
The US-based tech giant Apple may shift 18 per cent of its global iPhone production to India by 2025 due to the government’s production-linked incentive scheme for mobile phones, according to a new report. The scheme may encourage Apple and its vendors to expand operations in the country.
The report from Bank of America, spotted by the Economic Times, said that the PLI scheme for mobile phones can help India meet its ambitious target to treble its domestic production to $126 billion and achieve five times growth in exports to $55 billion, by FY26.
Earlier, reports suggested that Apple has raised its iPhone production in India from 1 per cent in 2021 to 7 per cent in 2023. Previous reports also mentioned that Apple wants to manufacture 25 per cent of iPhones sold globally in India by 2025.
The report from Bank of America added that mobile phones are 21.5 per cent of India’s electronics domestic demand. This massive demand is also growing at 15 per cent CAGR. As per the report, India consumed $158 billion worth of electronic goods in FY2023. The demand grew at 11 per cent CAGR over FY17-23.
However, most of the supplies were covered by imports. In FY23, India’s electronics imports stood at $77 billion. It was also the second-largest import bill that represented 20% of the country’s trade deficit, the report mentioned.
The report suggested that 70 pr cent of the mobile phone’s cost which includes the display, memory and semiconductors is difficult to localise. Such arrangements require huge capex and high-end technology.
The report highlighted that the Rs 38,000-crore PLI scheme has contributed to enhancing the export mix in local production. As a result of this scheme, electronic exports have grown from 16 per cent to 25 per cent year-on-year. This development has positioned India as a reliable global supply chain option for mobile phones and electronics manufacturers.
Apple recently opened its first 2 exclusive Indian retail stores in Mumbai and Delhi. CEO Tim Cook personally inaugurated these outlets in April. As part of its expansion strategy, the iPhone maker is now planning to open 3 additional stores in the country by 2027.
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