To establish a strong presence in India, Apple will be closing the financial year 2022 with exporting phones manufactured in India worth Rs. 10,000 crore. Notably, this feat has been achieved by Apple within the first year of starting production in India under the production-linked incentive scheme.
In addition to this, during the fiscal year Apple has been able to meet about 75-80% of the total demand in India through domestic production alone. In the previous year, the company was able to meet only 10-15% of the demand through domestic production. Sources said that in the next fiscal, the company will be able to meet an even larger percentage of domestic demand through its domestic output.
Apple’s Indian contract manufacturers
Apple phones are produced by the company’s contract manufacturers and in India this export target has been achieved by two of its contract manufacturers, who have been selected under the PLI scheme. These two manufacturers are Wistron and Foxconn Hon Hai. Of the two, the larger share has been by Wistron because Foxconn Hon Hai had remained shut for two months (December and January) due to a food poisoning case. Apple also has a third contract manufacturer namely, Pegatron. The manufacturer has also been selected under the PLI but is not going to start production until April 1, so in its second year of operations, Apple’s export from India will increase. Wistron is located in Karnataka and Foxconn is located in Tamil Nadu.
The iPhone models that have been exported the most are the SE 2020 — made by Wistron, followed by iPhone 11 and 12 — made by Foxconn. Sources stated that Foxconn will soon start manufacturing iPhone 13 in India.
PLI schemeÂ
The domestic production story of Apple was started barely two years ago. The government revealed its PLI scheme for smartphones in April 2020 and the selected specific companies to start operations from August the same year. However, the first year was a let-down because Covid disturbed the entire supply chain. The government then extended the duration of the scheme from five year period to six, giving the companies the opportunity to select five years within this span. In this way, Apple’s cycle under PLI started from August 2021.
Analysts have stated that by its first year performance Apple has achieved the goals set by the government under the PLI scheme. This included shifting the global production base to India, making India the export centre for phones, and also catering to the domestic demand. The smartphone PLI was the first such scheme based on which the government had now expanded the same into several other sectors.
Comments are closed, but trackbacks and pingbacks are open.