Last year, Apple achieved a significant milestone by manufacturing iPhones valued at over Rs 1 lakh crore in India, marking a substantial increase in production compared to the previous year. According to a report by The Economic Times, iPhones amounting to Rs 65,000 crore, produced within India, were exported to various countries between January and December.

An official cited in the report clarified that the Rs 1 lakh crore figure represents the factory price (Freight on board or FOB) of the iPhones, and the actual market value could range between Rs 1.5 lakh crore and Rs 1.7 lakh crore, factoring in taxes and dealer margins in different nations.

This accomplishment surpasses the targets set under the production-linked incentive (PLI) scheme, potentially paving the way for additional incentives for Apple's contract manufacturers, as highlighted by the official. The PLI benefits are applicable to the device's value upon leaving the factory, reflecting positively on the government's efforts to diversify supply chains away from China.

This development underscores Apple's commitment to establish India as a key hub for iPhone manufacturing, indicating an expansion of its supply chain within the country. According to Counterpoint data referenced in the ET report, Apple has become possibly the largest phone manufacturer in India by value, witnessing a growth in market share from 2 per cent in FY18 to 6 per cent in FY23.

While Samsung's market share declined, Apple's business in India has experienced significant growth, leveraging a network of Indian suppliers, including a unit from the Tata Group, to facilitate the shift in production from China.

In the year 2023, Apple's production achievement coincides with the upcoming visit of US Trade Representative Katherine Tai to participate in the Indo-US Trade Policy Forum in Delhi. The three contract manufacturers for Apple in India—Foxconn, Pegatron, and Tata-owned Wistron—all received approval for incentives under the PLI scheme, with Foxconn leading production at 68 percent, followed by Pegatron at 18 percent, and Wistron at 14 percent.

Notably, in 2023, Apple manufactured and exported five iPhone models (11, 12, 13, 14, and 15), with a majority of the iPhones produced in India being shipped to the US, Europe, and West Asia, constituting approximately 65 percent of total exports, as per the report.