According to industry figures, India’s iPhone exports reached a record high of Rs 10,000 crore in May, driving up the country’s outbound shipments of smartphones to Rs 12,000 crore for the month.
According to government officials with knowledge of the situation, Indian officials want to persuade other US companies, like Tesla, to move their supply chains here by using Apple’s expanding India engagement as an example.
Data from industry group India Cellular and Electronics Association obtained by ET shows that in the first two months of this fiscal year (April and May), smartphone shipments exceeded Rs 20,000 crore ($2.4 billion), more than double the Rs 9,066 crore registered in the same period last year. Apple belongs to the organization.
80% of India’s smartphone exports are iPhones, with the remaining 20% being Samsung smartphones and a few indigenous brands.
The Cupertino, California-based corporation is working hard to make India it’s second home for iPhone manufacture, experts say, and the shipments of iPhones from April to May are evidence of this. iPhone became the first brand to accomplish this achievement in FY23, with exports from India totaling $5 billion.
With India increasingly becoming a production powerhouse for iPhones, Apple has been diversifying its supply chains away from China. The business is looking into possibilities for local production of AirPods.
Prior to 2020, China dominated the majority of supply chains. The launch of New Delhi’s ambitious smartphone production-linked incentive (PLI) program and geopolitical tensions between Washington and Beijing, however, has caused Apple to turn more of its attention to India.
The Indian team is anticipated to showcase the success story of Apple here to persuade American businesses like Tesla to move their supply chains to India during Prime Minister Narendra Modi’s June 21–24 state visit to the US. One of the officials remarked, “The supply chains are being strengthened.”
According to officials, the key areas would be electric cars, semiconductors, and other important new technologies.
According to officials, the Indian delegation has numerous industry contacts scheduled, particularly with businesses involved in crucially developing technologies and supply networks. CEOs from US businesses will attend a luncheon meeting hosted by US Vice President Kamala Harris and the ceremonial state dinner hosted by US President Joe Biden and the First Lady on June 22.
A luncheon in Washington on June 21, a roundtable with IT CEOs, and a reception honoring Modi hosted by the US-India Strategic Partnership Forum on June 23 are the other three US industry events scheduled.
According to research from BofA Securities, India wants to take advantage of the opportunity presented by the globalization of supply chains.
According to experts, Apple has increased its focus on India as a manufacturing base, not only for exports but also for the domestic market, where there is a growing demand for high-end products. The nation’s first two Apple flagship stores were recently inaugurated by CEO Tim Cook.
The company’s three Taiwanese contract manufacturers, Foxconn (Hon Hai), Wistron, and Pegatron, produce and export the iPhone 12, 13, and 14 models from their facilities in Tamil Nadu and Karnataka. The smartphone PLI system benefits the three manufacturers.