Apple Inc. is set to significantly increase its production capacity in India, with plans to expand its investment in the country to approximately $40 billion over the next four to five years.
Government sources, wishing to remain anonymous, disclosed this ambitious expansion strategy, noting that Apple had already crossed the $7 billion production milestone during the previous fiscal year.
According to the official, Apple's expansion in India is on the brink to extend beyond its current iPhone manufacturing operations. While iPhones have been manufactured in India, the company intends to begin the production of Airpods in the coming year. However, there are currently no immediate plans to manufacture iPads or laptops within India.
“They don't have any plans to participate in IT hardware PLI. They may come at a later stage but as of now their focus is to scale up existing production levels,” PTI quoted the official as saying.
Apple's commitment to India is evident in its recent product launches. On September 22, 2023, Apple introduced the highly anticipated iPhone 15 series, featuring the iPhone 15, iPhone 15 Plus, iPhone 15 Pro, and iPhone 15 Pro Max, which hit stores in India and various other countries simultaneously. Remarkably, Apple released the India-built iPhone 15 models on the same day they became available worldwide, underscoring India's importance in Apple's global production and distribution network.
Industry insiders cited by Business Today reported that the launch of the iPhone 15 series in India saw a remarkable 100 per cent growth in sales compared to the previous iPhone 14 series launch. Apple posted substantial financial figures for the fiscal year ending on September 25, 2022, with global iPhone sales reaching $191 billion and wearable, home, and accessories segment sales reaching $38.36 billion.
Market research firm Counterpoint Research also noted Apple's dominance in India's top smartphone market segment, which includes phones priced above Rs 45,000 ($541). Apple secured a 59 per cent market share in this category during the first quarter of 2023, confirming India's position as one of Apple's top five markets.
Apple's exponential growth in India's manufacturing and export landscape was highlighted by it surpassing Samsung as the leading exporter of smartphones from India. In the June quarter, Apple accounted for 49 per cent of the country's total smartphone shipments, compared to Samsung's 45 per cent, according to a report by the Economic Times. This highlights Apple’s rapid expansion and substantial investment in regional production and exports from India.