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Apple’s production output in India reaches $10 billion within a span of 10 months

During the ten-month period from April to January in the current fiscal year, Apple’s production of iPhones in India has exceeded $10 billion, marking a significant increase from the $7 billion recorded in the previous fiscal year. This surge in production represents nearly a 30% rise in output compared to the previous fiscal period.

Sources indicate that more than 70% of the total production has been exported to various countries across Europe, the United States, and Asia. This demonstrates the global demand for Apple products manufactured in India.

Moreover, this fiscal year marks a milestone for Apple, with the company achieving an average monthly production of over $1 billion, a substantial increase from the $620 million per month recorded in the previous fiscal year.

This impressive production output has been made possible through the efforts of Apple’s three key vendors operating in India: Foxconn Hon Hai and Pegatron, both located in Tamil Nadu, and Wistron, which is now under the ownership of the Tata Group and situated in Karnataka.

Industry data and information provided by these vendors indicate that Foxconn Hon Hai has contributed the majority share, accounting for over 70% of the total production. Pegatron and Wistron collectively make up the remaining 30%.

All three vendors are participants in the government’s smartphone production-linked incentive (PLI) scheme, which has been hailed as one of the most successful among the 14 PLI schemes implemented. The scheme has not only led to incremental production over the base year of 2019-20 but also spurred exports, job creation, and investments in the sector.

As part of the PLI scheme, Apple’s vendors are required to invest Rs 1,000 crore each over the course of five years. Remarkably, all three vendors are ahead of schedule in meeting their investment commitments.

While Foxconn Hon Hai has already qualified for the PLI incentive for the current fiscal year, Pegatron and Wistron are expected to surpass the minimum production threshold of Rs 15,000 crore by the end of the current month, making them eligible for incentives as well. Consequently, all three companies are poised to qualify for PLI incentives in the third year of the scheme, with Foxconn expected to exceed the threshold.

In addition to Apple’s vendors, other significant participants in the smartphone PLI scheme include Samsung and Bharat FIH (another Foxconn subsidiary). Domestic companies such as Lava, Micromax (under the brand Bhagwati), Dixon (through Padget Electronics), UTL Neolyncs, and Optiemus Electronics are also part of the scheme. However, Apple’s vendors and Samsung have emerged as leaders in production among international companies.

The PLI scheme, which began in 2020 and spans five years until 2026, allows participating companies to select any five consecutive years for their operations.

Recently, Communications and IT Minister Ashwini Vaishnaw revealed plans for big global electronics firms, including Apple’s vendors, to establish mega campuses in India. These campuses will host clusters of factories producing a range of electronic products, further bolstering India’s position as a manufacturing hub in the global electronics industry.

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