Due to the 'Make in India' initiative and the production-linked incentive (PLI) scheme, iPhone production in India has risen from less than 1% in 2017 to 10% in 2023, with plans to reach 25% of global shipments by 2025.
According to a report by global investment firm Jefferies, the surge is driven by the mobile PLI scheme and a diversification of global supply chains, which have boosted Apple's local manufacturing presence in India.
Following the global debut of the iPhone 16 Pro and Pro Max models, Apple is poised to launch its 'Make in India' versions of these devices in the country.
The tech giant plans to manufacture over 50 million iPhones annually in India, reducing its reliance on China. In the fiscal year 2023-24, iPhone exports from India doubled to $12.1 billion, compared to $6.27 billion the previous year. Overall, Apple’s Indian operations were valued at $23.5 billion in FY24.
The report by Jefferies highlights India's growing electronics export trend, though there is still room for value-added growth. Electronics imports remain more than twice the volume of exports, signaling further potential for increasing local production.
To support manufacturing across various sectors, the Indian government has allocated Rs 2 lakh crore in PLI across 14 industries, with an additional Rs 70,000 crore earmarked to develop the semiconductor and display manufacturing ecosystem.
Industry experts predict that Apple's success in India will continue with the launch of the iPhone 16 series, driven by increased local manufacturing and strong marketing efforts. Consumers are increasingly prioritizing the latest iPhone models over previous generations, reflecting Apple’s aspirational appeal in the Indian market.
According to Prabhu Ram, VP of Industry Research Group at CyberMedia Research, sales of the new iPhone 16 series could grow by 30% compared to the iPhone 15 series during the launch quarter.