Apple To Increase iPhone Production In India By 18% By 2025: Report
A recent report suggests that Apple, the tech giant from the US, could potentially relocate 18% of its worldwide iPhone production to India by 2025, thanks to the government’s mobile phone production-linked incentive scheme. This initiative could motivate Apple and its suppliers to increase their business activities in India.
A Bank of America report spotted by the Economic Times states that the PLI scheme for mobile phones can help India achieve its ambitious target of tripling domestic output to $126 billion and achieving five-fold growth in exports to $55 billion by FY26.
Earlier reports suggested that Apple has increased its iPhone production in India from 1 percent in 2021 to 7 percent in 2023. Earlier reports also mentioned that Apple wants to manufacture 25 percent of iPhones sold globally in India by 2025.
Bank of America added to the report that mobile phones account for 21.5 percent of India’s domestic demand for electronics. This huge demand is also growing at a CAGR of 15 percent. According to the report, India will consume $158 billion worth of electronic products in 2023. Demand grew at a CAGR of 11 percent in FY17-23.
However, most purchases were covered by imports. In FY23, India’s electronics imports were $77 billion. It was also the second largest import bill, representing 20 percent of the country’s trade deficit, the report said.
According to the report, 70 percent of the price of a mobile phone, which includes the screen, memory and semiconductors, is difficult to locate. Such arrangements require large investments and state-of-the-art technology.
The report highlighted that the Rs 38,000 PLI scheme has contributed to improving the export portfolio of local production. As a result of the system, the export of electronic products has increased from 16 percent to 25 percent from a year ago. This development has positioned India as a reliable global supply chain for mobile phone and electronics manufacturers.
Apple recently opened its first two exclusive Indian retail stores in Mumbai and Delhi. CEO Tim Cook personally inaugurated these points of sale in April. As part of its expansion strategy, the iPhone manufacturer is now planning to open 3 additional stores in the country by 2027.
