India has seen a significant increase in its smartphone exports, reaching a milestone of Rs 2 lakh crore in the last financial year, marking an impressive 54% year-on-year growth.
This growth is largely driven by companies like Apple and Samsung, who have ramped up their manufacturing and exports in India to take advantage of the central government’s Production-Linked Incentive (PLI) scheme.
iPhone’s Dominance
Out of the total smartphone exports, iPhone accounts for a dominant 75% share, valued at about Rs 1.5 lakh crore.
This surge in exports is largely attributed to Apple’s growing manufacturing footprint in India.
In fact, Apple’s contract manufacturer, Foxconn, assembled around 1.2 crore iPhones in India last year and has plans to ramp this up to 3 crore units this year.
Expansion of iPhone Manufacturing
Foxconn has been conducting manufacturing trials at its factory near Bengaluru, Karnataka, as part of its effort to meet Apple’s high standards and increase iPhone production.
The company is optimistic about benefiting from tax exemptions on imported smartphone parts announced in this year’s budget.
Additionally, Foxconn’s plant in Hyderabad is set to begin manufacturing AirPods, marking an important milestone in diversifying Apple’s production in India.
This move is part of Foxconn’s broader strategy to shift some of its production from China to India.
The investment of around $400 million in the Hyderabad plant aims to boost production of Apple’s wireless earphones for export.
New Models and Production Plans
India is also seeing the assembly of Apple’s new iPhone 16e, an affordable version of the iPhone, which is set to replace the iPhone SE.
The iPhone 16e is being manufactured in India for both domestic sales and export.
Apple’s iPhone 16 series is also being assembled in the country, further solidifying India’s role as a key hub in Apple’s global supply chain.
Looking Ahead
The future of smartphone manufacturing in India looks bright, with continued growth in exports and increasing investments in local production.
Apple’s plans to start manufacturing MacBooks and iPads in India further highlight the country’s potential as a global manufacturing and export hub for technology products.
This shift in manufacturing not only strengthens India’s position in the global tech supply chain but also creates opportunities for local job growth and economic development.
