Indranil Chatterjee’s Post

In FY24, Apple achieved a groundbreaking milestone by exporting iPhones worth US$ 10 billion from India, marking a remarkable 100% increase compared to the previous fiscal year under the Production-Linked Incentive (PLI) scheme. This achievement not only represents the largest-ever export of a single branded product from India but also underscores Apple's strategic shift towards utilizing India as a hub for labour-intensive manufacturing exports. With iPhone exports accounting for 70% of its total production in FY24, Apple surpassed its committed export target under PLI for FY25 a year ahead, signalling a promising trajectory for future growth. Moreover, the Apple ecosystem's expansion in India has catalysed job creation, generating nearly 150,000 new direct jobs and approximately 300,000 additional indirect jobs since the inception of the PLI scheme. Additionally, Apple's robust performance in India extends beyond export success, with its revenue expected to surge by over 30% in FY24 compared to the previous fiscal year. Despite its accelerating presence in the Indian market, Apple's domestic revenue for FY23 only constituted 1.5% of its global turnover, reflecting the company's focus on leveraging India primarily for export-driven manufacturing rather than domestic sales. Recognizing the plateauing domestic market for mobile phones, particularly in the mid-range segment, industry associations advocate for prioritizing exports as the key driver to achieve the ambitious US$ 100 billion mobile production objective by 2026-27, positioning Apple as a pivotal player in India's mobile manufacturing landscape.

In the 2023-24 fiscal year, Apple Inc’s #iPhone shipments from #India have surged to US$ 12.1 billion, a #substantialleap from the previous period. This growth reflects the company’s expanding involvement in the Indian #manufacturing sector. The #techgiant is also increasing its recruitment efforts, aiming to employ half a million people through its #vendors and #component suppliers over the next #threeyears. The #export volume of iPhones from the country has #doubled, underlining the company’s strong foothold in the #Indianmarket. This surge is credited to initiatives like the #ProductionLinkedIncentive (#PLI) Program, which has facilitated the company’s expansion of its #globalsupplychain. Apple’s strategy to #diversify manufacturing beyond China includes significant #investments in India, where the company now manufactures 14 percent of its flagship products locally. The rise in #iPhoneproduction is supported by major #Taiwanesemanufacturers like Foxconn and Pegatron, showcasing India’s attractiveness as a #manufacturinghub. https://lnkd.in/dE2Psm2a

Why did Apple kick off the production for the latest iPhone 15 in India? This is the first time when a new iPhone is getting manufactured in India. It is a strategic step to reduce reliance on China. This move aims to tackle supply chain vulnerabilities and tap into potential cost savings by avoiding hefty import tariffs in India. The decision to split production between China and India stems from the aftermath of disruptions caused by a factory closure in China due to COVID-19, resulting in a shortfall of iPhones during the 2022 holiday season. By diversifying their manufacturing sites, Apple is bolstering resilience against similar hiccups. This isn't just about economic factors but also a subtle shift driven by rising diplomatic tensions between the US and China. Furthermore, Apple's investment in Indian manufacturing aligns with the nation's vibrant tech landscape. While China will maintain its key role due to cost efficiencies, this move shows Apple's commitment to embracing dynamic global markets. Let's keep an eye on how this strategic play unfolds! #Apple #iPhone15 #Manufacturing #GlobalStrategy

Apple is to create iPhones Rs 1 lakh crore in India by March 2024! As it has already manufactured and achieved Rs 60000 crore in production in first 7 months of FY24, it’s focused on crossing a new milestone. As 70% of iPhones manufactured in India get exported, exports touched Rs 40000 crore between April and October 2023. After finishing off India’s festive season in style, Apple is now focused on its success in the US and Western markets on their festivals coming. Though consumption of electronics dropped in the West, Apple hopes for the best and the gap has already been covered by success in India. 1. It became the first single brand to exceed Rs 40000 crore mark in exports from India. 2. It’s Apple’s record 185% YoY jump in exports in the first 7 months. 3. Apart from benefits from PLI schemes and new labour laws, it's partnership with Tata Group is also a crucial one. It also has support from Foxconn and Pegatron. Due to growing premiumization trend, great grasp of consumer demands, skilled labour, and availability of EMIs, India has become an ideal country for Apple’s rise to the top. Apple had a dream to make India a global hub for manufacturing and exports, now it is getting fulfilled. By any chance, if Apple falls short, it is predicted to reach the mark in the first quarter of FY25. It is also set to sell 1 crore iPhones in 2024 due to high demand and launch of new retail stores. Can Apple cross the Rs 1 lakh crore production mark in India this fast? What’s your prediction? #india #iphone #manufacturing #sales #money

"I'm very bullish on India" - Amid production disruption and sales drop in China... Apple CEO Tim Cook says India will be a "major focus" for the company, both as an alternative production base to China and as a source of growth. Apple set a quarterly revenue record in India for October to December, with double-digit YoY growth. This was a bright spot in an otherwise down quarter with headwinds in China and weakening global consumer demand as the company reported its first revenue drop in more than three years. Apple, without disclosing specific numbers, said it also logged an all-time record for iPhone sales in India in the quarter. "India is a hugely exciting market for us and is a major focus...We're putting a lot of emphasis on the market." Like China, India is important to Apple not only as a sizable market but also as a growing manufacturing hub. The Indian trade minister said late last month that Apple wants India to account for up to 25% of its production, from about 5% to 7% now. #apple #india #market #manufacturing #iphone #devices #growth #revenue https://lnkd.in/giGmGXdW

In a move to diversify its manufacturing footprint beyond China, Apple has remarkably doubled its iPhone production in India, achieving a significant $14 billion output in fiscal 2024. India now accounts for 14% of Apple's total iPhone production, a significant growth from 7% just last year, signalling a major shift in the tech giant's approach to its global supply chain strategy amidst the challenging geopolitical landscape. By increasing its manufacturing presence in India, Apple not only strengthens its supply chain resilience but also positions itself in a good position to navigate the complexities of international relations more effectively. Despite facing a 24% drop in iPhone sales in China in the first six weeks of 2024, Apple's forward-looking strategy to ramp up production in India demonstrates its adaptability and strategic foresight.

Tata Group is poised to become the first Indian company to manufacture iPhones locally. The group will begin producing Apple iPhones in India for both local and international markets in about 2.5 years, as announced by Electronics and Technology Min Rajeev Chandrasekhar. This landmark announcement not only highlights India's burgeoning manufacturing capabilities but also marks a notable shift in Apple's approach, as they transition from predominantly selling Chinese-made devices to customers worldwide. India's efforts to provide financial incentives for local manufacturing and Apple's decision to expand beyond China amid trade tensions between Washington and Beijing have also contributed in making India a more crucial part of Apple's strategy to diversify its operations.

Apple's got big plans for India! The US-based iPhone maker aims to grow its Indian workforce to a whopping 500,000 in the next three years, according to an ET report. The report comes as the company is moving half of its supply chain from China to India. With a focus on local value addition, Apple aims to increase domestic value addition from 11-12% to 15-18%. The move aligns with India's growing importance as a market and potential R&D hub. India's not just a market for Apple; it's also becoming a key spot for research and development. Currently, the local value addition stands at 14%, a bit shy of China's 41%. Apple has significantly escalated its presence in India over the past two years, focusing on both manufacturing and retail. #apple #india #employment #people #technology #Indianstartupnews

14% of Apple iPhones were assembled in India in 2023, thats up from only 1% in 2021. The salt-to-software conglomerate Tata Group is making a major push to become one of Apple's largest contract manufacturers. Now the company is in talks to acquire a majority stake in Pegatron's India iPhone assembly business. Here is everything you need to know about the potential deal. 📱 Entry into iPhone Assembly: Last year Tata paid $125M USD to acquire Wistron InfoComm Manufacturing (India) Private Ltd; the unit operates an iPhone assembly plant near Bengaluru. Tata took over the plants eight iPhone lines and 10,000 workers after the government approved the deal, marking its foray into the iPhone assembly business. The deal with Pegatron would add an additional 5M units of production capacity, solidifying Tata's position as India's second largest iPhone manufacturer after Foxconn. 💵 Incentives: Shifting iPhone production to India has several benefits. Manufacturers are compensated generously under the PLI scheme and also get import-duty free access to the Indian market. Smart phone imports are taxed at 22%. Apples share of the Indian smart-phone market has exploded from 2% to 6% in the last five years. Tata also plans to open 100 Apple stores in India, betting big on consumption by the expanding consumer market. Takeaways: Apples suppliers investment in India, at Apples demand, is a win-win situation. India deposits 10M people into the labor force each year who need jobs. Manufacturing will play a huge role in lifting millions of those Indians into the middle class. Assembling iPhones, and other electronic manufacturing services, is huge business. Last year Apple assemblers and suppliers in India employed over 150,000 people; and they are just getting started. Source: Bloomberg - https://lnkd.in/g535Z_BG #apple #India #tata

📱 Apple's Big Bet on India: A Win-Win for Innovation and Growth! 🇮🇳 In 2022-2023, Apple achieved a remarkable milestone by manufacturing over $7.5 billion worth of iPhones in India, with nearly $5 billion of those iPhones being exported – a significant leap that solidifies its position as the country's single largest mobile phone exporter. 📈 But that's not all – Apple has exciting plans on the horizon. The tech giant is gearing up to release the India-built iPhone 15 in the country and other regions on its global sales debut day. This historic move marks the first time that a latest-generation, #madeinindia device will be available on day one of its launch. 🚀 To put this achievement into context, before the iPhone 14, Apple only assembled a fraction of its global output in India, with production lagging behind China by 6 to 9 months. However, a confluence of factors, including escalating tensions between Beijing and Washington and supply chain disruptions caused by the COVID-19 pandemic, prompted Apple to significantly ramp up its production efforts in India. As a result, the production delay was reduced drastically to just weeks. 🌍 India's forward-thinking initiatives, such as the production-linked incentive (PLI) scheme for smartphones, played a pivotal role in attracting Apple to shift its manufacturing operations to the country. This strategic move has not only bolstered India's position as a global tech manufacturing hub but has also had a positive impact on local job creation and skill development. As of March this year, Apple has successfully increased the percentage of iPhones made in India to 7%. 📊 Here are some key highlights of Apple's journey in the Indian market in 2023: ✅ Strengthening India's Export Ecosystem ✅ Shortening Production Timelines ✅ Leveraging Government Initiatives ✅ Boosting Local Manufacturing Apple's commitment to India is not just about business; it's about collaboration, innovation, and contributing to India's growth story. It's a win-win for the tech giant and the nation, and I can't wait to see how this partnership continues to unfold in the years ahead. 🤝🌐 #AppleInIndia #Innovation #EconomicGrowth #TechManufacturing