Apple Inc is reportedly looking to assemble 32% of the global iPhone production volume and 26% of its value in India by 2026-27
For the first half of FY25, Apple’s vendors anticipate a freight-on-board (FOB) production value of $9 Bn
Meanwhile, earlier this month it was reported that tech giant has set up a new subsidiary in India, Apple Operations India, which will focus on research, design, testing and providing support to third party manufacturers
Apple Inc is reportedly looking to assemble 32% of the global iPhone production volume and 26% of its value in India by 2026-27.
As per a Business Standard report, this could translate into a production value of over $34 Bn, assuming global iPhone sales remain consistent with 2023-24 (FY24) levels.
The report added that discussions were held between Apple and its vendors and central and state governments, regarding the assembly of the devices in India.
For the first half of FY25, Apple’s vendors anticipate a freight-on-board (FOB) production value of $9 Bn. By the end of the fiscal year, India is projected to contribute 17-18% of the global iPhone production volume and 14% of its value.
In FY24, 12-14% of global iPhone production volume moved to India, contributing over 10% in value. For FY25, Apple’s vendors project a production value of $18 Bn (estimated market value of around $27 Bn). Market value includes sales, distribution costs, and dealer margins, while FOB reflects the value at shipping.
In FY24, iPhone production in India reached a value of $14 Bn. This shift from China marks a significant gain for India, as iPhones contributed 51% of Apple Inc’s total global revenue, which amounted to $391 Bn for the fiscal year ending September 30, 2024.
Also in FY24, Apple’s iPhone global revenue of $201 Bn exceeded Tata Group’s total revenue of $165 Bn by 21% and was 67% higher than Reliance Industries’ $119 Bn.
Originally planning to move 10% of production to India by the fifth year of the PLI scheme, Apple has already surpassed this target by the scheme’s third year, with projections suggesting 25-30% of iPhone production could be in India by 2026-27, according to JP Morgan.
The development comes at a time when Apple has actively diversified its production outside of China amid geopolitical tensions between Beijing and Washington DC. This pivot to India also comes on the back of hefty production linked incentives (PLIs) and other sops offered by the Centre.
Meanwhile, earlier this month it was reported that tech giant has set up a new subsidiary in India, Apple Operations India, which will focus on research, design, testing and providing support to third party manufacturers.
This also marks the company’s first direct presence in the country.
Recently, Apple announced plans to begin initial manufacturing of the iPhone 17 base model in India, partnering with a local factory for this production.
