Mumbai, Apple has achieved remarkable success in India, becoming the fastest-growing company in the country over the past five decades. This impressive rise has been driven largely by the company’s increasing focus on iPhone manufacturing and the growing domestic sales of its products, including MacBooks, iPads, Watches, AirPods, and more.
India’s contribution to Apple’s total global production now stands at a staggering 14%, a significant increase from 7% in FY23, according to a recent economic survey. The majority of this growth is attributed to the manufacturing of iPhones in the country.
In FY24, Apple’s operations in India exceeded a value of Rs 2 lakh crore ($23.5 billion), up from Rs 1.15 lakh crore the previous year. This rapid expansion not only highlights Apple’s deepening footprint in India but also positions it as the largest global value chain (GVC) operating within the country. This growth has enabled Apple to surpass other multinational corporations and cement itself as a major player in India’s economy.
India’s growing contribution to Apple’s global production is a noteworthy development. The country has emerged as a vital hub for Apple’s supply chain, especially as the tech giant begins to reduce its reliance on China.
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The production of iPhones in India has reached an impressive Rs 1.20 lakh crore, with the market value of these devices estimated at Rs 1.80 lakh crore. Of this, approximately 75% of the iPhones produced in India were exported to key markets in Europe, the United States, West Asia, and other regions. The remaining 25% were sold within the Indian market, demonstrating Apple’s growing influence both domestically and internationally.
Apple’s growing presence in India can be attributed to the government’s production-linked incentive (PLI) scheme, which was introduced in 2020 to boost domestic manufacturing.
Apple began producing iPhones in India in 2021 through its three major contract manufacturers—Foxconn, Wistron, and Pegatron. This local production has steadily increased, playing a crucial role in the company’s rapid growth in the country. The PLI scheme has provided Apple with financial incentives to expand its manufacturing base in India, resulting in increased output and the ability to serve both local and global markets.
This expansion has also had a significant impact on employment in the country. Since 2021, Apple’s manufacturing ecosystem in India has generated more than 150,000 direct jobs.
Foxconn’s factory alone employs over 41,000 people, making it a major source of employment in the regions where these factories are located. As Apple continues to scale up its production in India, these numbers are expected to grow further, providing more opportunities for skilled and semi-skilled workers across the country.
Apple’s performance in India is especially noteworthy given the challenges the company faces in a market dominated by Android-based smartphones from brands like Vivo and Xiaomi.
Despite this competition, Apple has managed to carve out a niche for itself in the Indian smartphone market. Its market share has grown steadily from just 2% in FY18 to nearly 6% in FY24. This growth has been fueled by the increasing popularity of iPhones, particularly among India’s affluent urban consumers.
Apple’s India revenue has also seen substantial growth, reaching Rs 68,000 crore in FY24, a fivefold increase from Rs 13,756 crore in FY20. This impressive revenue growth includes not just iPhones but a wide range of Apple products, from MacBooks to iPads to AirPods.
The expansion of Apple’s product offerings in India has helped the company diversify its revenue streams and strengthen its presence in one of the world’s most dynamic and competitive markets.
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Apple CEO Tim Cook has recognized India’s potential, calling it an “incredibly exciting market” for the company. Cook’s visit to India in April last year was a significant moment for the company’s relationship with the country.
During his visit, Cook met with Prime Minister Narendra Modi and inaugurated Apple’s first two company-owned retail stores in Delhi and Mumbai. These stores marked a major milestone for Apple’s retail strategy in India, signaling the company’s commitment to deepening its connection with Indian consumers.
Apple’s expansion in India comes at a time when the country’s smartphone market is experiencing broader shifts. According to Counterpoint Research, smartphone shipments in India fell by 2% year-on-year in the June quarter.
This decline was attributed to factors such as a heatwave, a seasonal slump, and a slowdown in consumer demand. Despite these challenges, Apple has continued to grow in India, reinforcing the strategic importance of the country in its global operations.
As Apple continues to invest in India, the country is expected to play an increasingly critical role in the company’s global strategy.
Apple’s decision to shift part of its supply chain away from China is particularly significant in light of ongoing geopolitical tensions and the need for greater supply chain diversification. India’s rise as a major production hub for Apple highlights the country’s growing influence in the global technology ecosystem.
India’s emergence as a key player in Apple’s global supply chain also underscores the broader trends shaping the global technology landscape. As companies look to diversify their manufacturing bases and reduce their reliance on any single market, India is emerging as an attractive destination for investment.
Apple’s success in India serves as a model for other multinational corporations seeking to expand their operations in the country and tap into its growing pool of skilled labor and manufacturing capabilities.
