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iPhones worth Rs 47,000 Crore To Be Made in India In FY23; More Cheaper Apple Phones This Year?

iPhones worth Rs 47,000 Crore To Be Made in India In FY23; More Cheaper Apple Phones This Year?
Written by Publishing Team

Apple’s iPhones worth Rs 47,000 crore are expected to be made in India in the current financial year, compared with Rs 10,000 crore worth of these smartphones manufactured in the year 2021-22, according to an ET report quoting sources. This is the second year of the production-linked incentives scheme that started in April.

Under the PLI scheme, each of the contract manufacturers, Foxconn, Wistron and Pegatron, are required to manufacture phones worth Rs 8,000 crore.

India constitutes less than 1.5 per cent of Apple’s global sales. Over 60 per cent of the production of iPhones will be for exports, one of the primary goals of the PLI scheme.

Apple to see record shipments of around seven million units this year, giving it its highest-ever market share of 5.5 per cent. It will be driven by huge demand for a wider portfolio of devices and backed up by higher local production and attractive financing schemes.

The report said Apple is expected to produce iPhones worth USD 6 billion at the factory price during 2022-23, according to the report. The company’s India manufacturing started with iPhone SE in 2017 and the locally manufactured range now includes iPhones 11, 12 and 13.

There are three contract manufacturers for iPhones in India — Wistron, Foxconn and Pegatron. Pegatron started production this month. Wistron (Bengaluru) and Pegatron (Tamil Nadu) mainly manufacture iPhone 12, while Foxconn makes iPhones 11, 12 and 13 at its plant in Tamil Nadu.

The PLI scheme for smartphones was floated in 2020 to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components, including assembly, testing, labeling and packaging (ATMP) units.

The scheme would tremendously boost the electronics manufacturing landscape and establish India at the global level in the electronics sector.

An of 4-6 per cent is provided on incremental sales (over the base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of five years resulting in the base year as defined.

“The domestic electronics hardware manufacturing sector faces the lack of a level-playing field vis-à-vis competing nations. The sector suffers disability of around 8.5-11 per cent on account of lack of adequate infrastructure, domestic supply chain and logistics; high cost of finance; lack availability of quality power; limited design capabilities and focus on R&D by the industry; and inadequacies in skill development,” according to information available on the Ministry of Electronics & Information Technology’s website.

The vision of National Policy on Electronics 2019 (NPE 2019) is to position India as a global hub for Electronics System Design and Manufacturing (ESDM) by encouraging and driving capabilities in the country for developing core components and creating an enabling environment for the industry to compete globally.

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