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Apple’s India operations soar to Rs 2 trillion in FY24

Apple’s India operations during FY24, ideally speaking (though the origin of a significant part dates back to mid-2022), Apple’s operation in India is allowed by value over Rs 2 trillion, from what will appear a shallow base nonetheless underbrushing Rs 1.15 trillion last year. The growth resulted from increased iPhone production and higher domestic sales of MacBooks, iMacs, iPad Watches and AirPods.

Officials said Apple has emerged as the fastest-growing company in production and exports. With this, the Cupertino-based tech giant is now India’s most extensive global value chain (GVC). The report said Apple is the first GVC in India to have followed its China-plus-one investment strategy so swiftly.

The recent Economic Survey also establishes that India constitutes about 14 percent of Apple’s total production, reinforcing its importance as a crucial center for worldwide exports. Significantly, this is higher than the 7 percent contribution in FY23. According to a calculation based on official data, iPhones accounted for most exports as handsets worth nearly Rs 1.35 lakh crore since they shipped out in the 2017-18 fiscal year from Indian factories.

According to estimates, Apple products made about Rs 68,000 crore in sales from the domestic market by the time FY24 ended. The report said that the worth of iPhone exports in FY23. Around Rs 66k cr compared to this.

Apple’s India Operations Rise in Market Share in India.

Apple has under 6 percent of the market thus far in India. Still, it is climbing from almost nothing — just over 2 percent share back in FY18 — against an army of Android devices guided by Chinese behemoths like Vivo and Xiaomi. Moreover, India was an inconsequential revenue contributor to Apple’s global earnings, covering $383 billion in FY23 at less than 2 percent. Apple’s financial year straddles October to September, meaning any fiscal 2024. Results will be detailed in the quarter ending with September of this calendar (and vice versa).

Apple’s India operations have seen significant growth since last year after the government introduced its smartphone production-linked incentive (PLI) scheme. In 2021, Apple finally started producing the iPhone in India — its first non-China production effort.

Through its tie-ups with Foxconn, Wistron, and Pegatron, iPhone manufacturing in India has increased to 1.20 trillion by FY24.

FAQs:

Why has Apple reached this point regarding the value of working margin operations in India for FY24?

In India, Apple’s operations grew to Rs 2 trillion as per the FY24 estimates, owing to an increase in iPhone production and local sales of MacBooks, iPads, and Watches besides AirPods.

What part of Apple’s worldwide production?

Apple will produce around 14% of its total production in FY24. This is up from under the company’s flagship during this fiscal year, and several firms mark their devices as “made in India.”

What shifts have Apple’s market share experienced over the years?

In the quarter ending June 2023, Apple’s growth in market share moved rapidly from a mere 2% back in FY18 to nearly about 6%, says Kramw.

Where does India fit into Apple’s broader supply chain?

India: Suddenly important for incoming and outgoing Apple, Apple has seen a massive production increase in India, and parts of the supply chain moved from China there.

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