India’s push to become a force in electronics manufacturing is showing progress as outbound shipments of India-made Apple iPhones are set to touch $2.5 billion in the 12 months to March 2023, primarily to Europe and the Middle East. In the five months leading up to April, Apple Inc.’s iPhone exports from India exceeded $1 billion, according to sources familiar with the matter. This milestone indicates that India is making strides in electronics manufacturing.
However, it would still take about eight years to move just 10% of Apple’s production capacity out of China, where approximately 98% of the company’s iPhones are currently manufactured. This shows the significant challenge India faces in becoming a global electronics manufacturing hub, and the need to improve its infrastructure, technology, and labor force to compete with China.
Nevertheless, India’s success in exporting India-made Apple iPhones is a positive development and highlights the country’s potential to become a major player in electronics manufacturing. The Indian government has been pushing for increased investment in the sector, offering incentives to companies that set up manufacturing units in the country. With the increasing focus on digitalization and the growing demand for electronics, India has the potential to become a key player in the global electronics manufacturing industry.h
Outbound shipments of India-made iPhones to Europe and the Middle East are expected to reach $2.5 billion in the 12 months leading up to March 2023, based on current rates, according to sources familiar with the matter. This is nearly double the $1.3 billion worth of iPhones that were exported to India by March 2022. The data is not public, and the sources have requested anonymity.
This development is a positive sign for India’s electronics manufacturing sector, which has been actively pushing for more investment and incentives for companies to set up manufacturing units in the country. India’s goal is to become a major player in the global electronics manufacturing industry, and the success of India-made iPhone exports is a step in that direction.
The increasing focus on digitalization and the growing demand for electronics worldwide offer a significant opportunity for India to become a global hub for electronics manufacturing. However, the country will need to continue to invest in infrastructure, technology, and the labor force to compete with other major players in the industry, especially China.
Although India currently produces only a small share of iPhone output, the growing exports of India-made iPhones is a positive sign for the Indian government’s push to make the country a viable alternative to China as the world’s factory. As Apple has long relied on China for most of its iPhone manufacturing, the company is looking for alternative options, especially amid tensions between the US and Chinese governments and the economic disruptions caused by nationwide lockdowns in China.
India’s success in exporting India-made iPhones is expected to attract more investment and incentives from the Indian government, which has been actively encouraging companies to set up manufacturing units in the country. Prime Minister Narendra Modi’s plans to boost electronics manufacturing in India align with the increasing global demand for electronics and the need for alternative manufacturing hubs.
However, India still has a long way to go to catch up with China in terms of manufacturing capacity, infrastructure, technology, and labor force. The success of India-made iPhone exports highlights the potential of India to become a major player in the global electronics manufacturing industry, but the country will need to continue to improve its capabilities to compete with China and other established players in the market.
The healthy growth in exports of India-made iPhones and Apple’s manufacturing scale in India are positive signs for India’s electronics manufacturing industry and the country’s position in Apple’s China Plus One strategy, according to Navkender Singh, an analyst at tech researcher IDC. The success of India-made iPhones in exports is also seen as a big sign of the success of India’s fiscal stimulus plan, which has attracted more investment and incentives from companies like Apple to set up manufacturing units in the country.
Apple had considered producing its pricier iPhones in India before Prime Minister Modi’s $6 billion stimulus push in 2020, which helped lure the US tech giant and its suppliers to ramp up production in the country. The success of India-made iPhones in exports and Apple’s manufacturing scale in India indicate that the country is gradually assuming an important place in Apple’s strategy to diversify its manufacturing operations away from China.
Apple representatives have not yet commented on the matter. However, the trend of increasing exports of India-made iPhones is expected to attract more investment and incentives from the Indian government, which is keen to establish India as a viable alternative to China as the world’s factory.
Apple’s main Taiwanese contract manufacturers, Foxconn Technology Group, Wistron Corporation, and Pegatron Corporation, currently manufacture the iPhone at plants in southern India. All three companies won production incentives under the Indian federal government’s scheme, which has encouraged investment in the country’s electronics manufacturing industry.
However, India’s production of iPhones is still far behind China’s, with an estimated 3 million iPhones made in India last year compared to 230 million in China, according to Bloomberg Intelligence estimates. Despite this, the growth of India-made iPhone exports is a positive sign for India’s electronics manufacturing industry, and the country’s push to become a major player in the global market.
India’s success in attracting investment and incentives from companies like Apple is expected to encourage further growth in the country’s electronics manufacturing industry. However, India still has a long way to go to catch up with China in terms of manufacturing capacity, technology, and labor force. The Indian government will need to continue to invest in infrastructure and technology to make the country a more attractive destination for global electronics manufacturers.
India’s success in exporting India-made iPhones continues, with devices including the iPhone 11, 12, and 13 models exported from April to August this year, according to sources familiar with the matter. Additionally, the export of the iPhone 14 will begin soon. Apple started manufacturing the iPhone 14 in India last month, earlier than expected, after a surprisingly smooth production rollout that reduced the gap between Chinese and Indian production from months to just weeks.
The successful production rollout of the iPhone 14 in India is a positive development for India’s electronics manufacturing industry and its push to become a viable alternative to China as the world’s factory. The Indian government has been actively encouraging investment and incentives for companies to set up manufacturing units in the country, with a focus on electronics manufacturing.
India is preparing plans to increase financial incentives for tablet and laptop manufacturers, including Apple, in a bid to attract them to manufacture MacBooks and iPads locally, as well as other brands. However, it will not be easy for companies like Apple to exit China, where they have built a deep supply chain over nearly two decades. According to Bloomberg Intelligence, it could take up to eight years to move just 10% of Apple’s manufacturing capacity out of China, where about 98% of the company’s iPhones are currently made.
Despite the challenges, the Indian government is actively encouraging investment and incentives for companies to set up manufacturing units in the country, with a focus on electronics manufacturing. The increasing trend of India-made iPhone exports and the early start of iPhone 14 production in India are positive developments for India’s electronics manufacturing industry.
The government’s plans to increase financial incentives for tablet and laptop manufacturers could further attract investment and incentives from global electronics manufacturers like Apple. However, India will need to continue to invest in infrastructure, technology, and the labor force to compete with established players like China.
Frequently Asked Questions
What is the current status of Apple iPhone exports from India?
As per the latest reports, Apple iPhone exports from India have doubled between April and August.
What led to this increase in iPhone exports from India?
The increase in iPhone exports from India can be attributed to the government’s production-linked incentive (PLI) scheme, which encourages the production and export of mobile phones from the country.
Which models of iPhones are being exported from India?
Most of the iPhones being exported from India are reportedly iPhone SE (2020) and iPhone 11.
Which countries are importing these iPhones from India?
The iPhones exported from India are being imported by countries like the US, the UK, and Europe.
How much revenue has India generated from iPhone exports so far?
As of now, the revenue generated from iPhone exports from India is not clear. However, it is expected to be a significant amount.
What is the future outlook for iPhone exports from India?
The future outlook for iPhone exports from India looks promising, with more companies showing interest in setting up production facilities in the country.
Will Apple increase its production in India in the coming years?
Yes, Apple is reportedly planning to increase its production in India in the coming years, as the company looks to reduce its dependence on China for manufacturing.
How has the Indian government supported the growth of iPhone exports from the country?
The Indian government has supported the growth of iPhone exports from the country by providing incentives through the PLI scheme, which has helped attract more companies to invest in local manufacturing.
What are the benefits of increased iPhone exports from India?
Increased iPhone exports from India can lead to the creation of more jobs, increase in revenue for the country, and also help India establish itself as a key player in the global mobile phone market.
Are there any challenges that could affect the growth of iPhone exports from India?
Some of the challenges that could affect the growth of iPhone exports from India include the availability of skilled labor, infrastructure, and the ongoing trade tensions between India and China.
Conclusion
The increase in Apple iPhone exports from India between April and August is a significant development for the country’s economy. The production-linked incentive (PLI) scheme introduced by the Indian government has encouraged the production and export of mobile phones from India, which has led to the increase in iPhone exports. The iPhone SE (2020) and iPhone 11 are among the models being exported from India, and countries like the US, the UK, and Europe are importing them.
The revenue generated from iPhone exports from India so far is not clear, but it is expected to be a significant amount. The future outlook for iPhone exports from India looks promising, as more companies are showing interest in setting up production facilities in the country. Apple is reportedly planning to increase its production in India in the coming years, as the company looks to reduce its dependence on China for manufacturing.
The Indian government’s support through the PLI scheme has been instrumental in the growth of iPhone exports from the country. The scheme has provided incentives that have attracted more companies to invest in local manufacturing. Increased iPhone exports from India can lead to the creation of more jobs, an increase in revenue for the country, and help India establish itself as a key player in the global mobile phone market.
