Foxconn is Apple’s iPhone supplier
When Apple left China and came to India, no one believed that in just a few years the world’s largest company would break the 50-year record in terms of operations and exports. Now this has happened. There has been a huge surge in Apple’s manufacturing and exports in India in FY24 and the company’s turnover has crossed Rs 2 lakh crore. Which is a 50-year record. What is special is that Apple’s business has seen almost double the growth in the last one year.
About two years ago, due to the Covid situation in China, Apple changed its policy and entered India. The company subsequently expanded its production here. Now India has not only become a big market for Apple. In fact, it has also become a big destination on the supply front. iPhones and other Apple products are exported from India to many countries around the world.
This is the reason why Apple and Foxconn are continuously expanding their manufacturing units in India and making huge investments. The PLI scheme of the Government of India has also proved very helpful in this regard. Let us try to understand in the language of statistics how much business Apple has done in India and how the company has broken the 50-year-old record.
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50-year-old record broken
Apple’s Indian operations have seen a surge of Rs 2 lakh crore in FY24. Which was considered to be worth Rs 1.15 lakh crore in the financial year 2023. According to a report by The Economic Times, this growth is due to the surge in iPhone production and domestic sales of MacBook, iMac, iPad, Watch, and AirPods. What is special is that in the last 50 years, there has been the fastest growth in production and exports among all Indian companies.
This is how growth happened
In a recent economic study, it was mentioned that India’s share in Apple’s total production is around 14 percent, which has established itself as a major hub for the company’s global exports. While in the year 2023, the company’s share was only 7 percent. Calculations based on official figures show that the iPhone dominates the export figures; devices worth about Rs 1.35 lakh crore were shipped abroad in the last financial year. As per estimates, Apple will earn approximately Rs 68,000 crore in FY2024 by selling its products domestically. In contrast, the value of iPhones exported in FY2023 was Rs 66,000 crore.
India’s share in total revenue is less than 2 percent
If we talk about Apple’s market share in India at present, it is less than 6 percent. In fiscal year 2018, it will increase by only 2 percent. The market is mainly dominated by Android devices from Chinese brands such as Vivo and Xiaomi. Moreover, Apple’s global revenue in fiscal year 2023 was $383 billion. In which India’s share was less than 2 percent. Apple’s financial year runs from October to September. The results for fiscal year 2024 will be declared in October.
The central government had started the smartphone production-linked incentive i.e. PLI scheme from the year 2020. Since then the growth of the company was seen in India. Apple started manufacturing iPhones in India in 2021, its first production outside China. The iPhone is produced in India by Foxconn, Wistron and Pegatron. The value of which is Rs 1.20 lakh crore in FY2024.
