Apple’s India Business Tops $23 Billion As Manufacturing, Export Growth Reaches 50-Year Peak

A surge in iPhone manufacturing, along with increased domestic sales of MacBooks, iMacs, iPads, Watches, and AirPods, has boosted the value of Apple’s India operations to over Rs 2 lakh crore ($23.5 billion) in FY24.

This marks a significant rise from Rs 1.15 lakh crore in the previous fiscal year, according to top officials cited in an Economic Times report.

The officials added that Apple might have achieved the most rapid growth in production and exports by any firm in India over the past 50 years, establishing the tech giant as the largest global value chain (GVC) operating in the country.

Notably, Apple is also the first GVC in India to partially relocate its supply chain from China.

India now accounts for around 14 per cent of Apple’s global production, emerging as a key hub for the company's exports, as per the recent Economic Survey.

This marks a significant increase from the 7 per cent contribution recorded in FY23, with iPhones leading the charge.

According to the official data, of the Rs 2-lakh crore valuation, iPhones valued at around Rs 1.35 lakh crore ($15 billion) were exported last fiscal year.

Meanwhile, the domestic sales of Apple product contributed around Rs 68,000 crore ($8 billion) in FY24.

In comparison, Apple’s iPhone exports in FY23 were valued at Rs 66,000 crore.

Although Apple’s market share in India is below 6 per cent, it has steadily increased from 2 per cent in FY18, largely in a market dominated by the Android ecosystem, with brands like Vivo and Xiaomi leading the charge.

Additionally, India’s revenue contribution to Apple’s global income, which totalled $383 billion in FY23, is still under 2 per cent.

Apple operates on an October-September fiscal calendar, with its FY24 results expected to be released in October.

Apple has maintained a sales and distribution presence in India for years, but its operations saw a significant boost post-2020, after the government's introduction of the smartphone production-linked incentive (PLI) scheme.

In 2021, Apple began manufacturing iPhones in India, marking the first time production was shifted outside of China. Since then, iPhone production in India has consistently increased through Apple's three contract manufacturers—Foxconn, Wistron, and Pegatron—reaching Rs 1.20 lakh crore in FY24.

Tata acquired Wistron’s India facility late last year.

The government provides incentives based on the freight on board (FOB) value at which the devices leave the factory, with market value or retail prices being 50-60 per cent higher.

In FY24, Apple produced iPhones worth Rs 1.80 lakh crore based on market value.

Of this total production, 75 per cent of iPhones, with a market value of nearly Rs 1.35 lakh crore, were exported to markets in Europe, the US, West Asia, and other regions, while domestic sales accounted for the remaining Rs 45,000 crore.

According to the experts cited in the ET report, local manufacturing of iPhones has enabled Apple to boost sales in India, not just for iPhones but also across its entire product range.

Apple’s revenue in India soared to Rs 68,000 crore in FY24, a fivefold increase from Rs 13,756 crore in FY20. This figure includes sales of MacBooks, iMacs, iPads, Apple Watches, AirPods, and other accessories.

Although export figures are not included in India’s revenue, the increased manufacturing within Apple’s ecosystem has generated over 150,000 direct jobs since 2021.

Foxconn, which runs Apple’s largest factory in India, employs 41,000 people.

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