Fastest manufacturing growth in 50 years? Apple’s India business surpasses Rs 2 lakh crore; tech giant India’s largest global value chain

Apple’s India business grows in leaps! In FY24, Apple's India operations witnessed a remarkable surge, reaching a value of over Rs 2 lakh crore ($23.5 billion), a significant increase from Rs 1.15 lakh crore in the previous year. A significant increase in iPhone production, along with strong domestic sales of MacBooks, iMacs, iPads, Watches, and AirPods, has boosted the value of Apple's operations in India.
Top officials told ET that Apple's growth in production and exports in India over the last 50 years is likely the fastest and unparalleled by any other company, establishing the tech giant as the largest global value chain (GVC) operating within the country. Moreover, Apple is the first GVC in India to rapidly shift a portion of its supply chain away from China.
The acceleration in Apple's operations in India can be attributed to the government's introduction of the smartphone production-linked incentive (PLI) scheme in 2020.
In 2021, Apple began manufacturing iPhones in India, marking the first time the company produced iPhones outside of China. Since then, iPhone production in India has steadily increased through its three contract manufacturers – Foxconn, Wistron, and Pegatron – reaching Rs 1.20 lakh crore in FY24. 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% higher.

The Economic Survey highlights India's contribution to Apple's overall production, which has risen to approximately 14%, positioning the country as a crucial hub for the company's global exports. In FY23, India's share was around 7%. iPhones constitute the majority of these figures, with exported iPhones valued at around Rs 1.35 lakh crore ($15 billion) in the last fiscal year, based on official data calculations.
Domestic sales of Apple products in India reached approximately Rs 68,000 crore ($8 billion) in FY24. In FY23, Apple exported iPhones with a market value of Rs 66,000 crore. The company's market share in India, although steadily increasing from 2% in FY18, remains below 6% due to the dominance of the Android ecosystem, led by Chinese brands such as Vivo and Xiaomi. Additionally, India's revenue contribution to Apple's global revenue of $383 billion in FY23 was less than 2%.
Also Read | Apple ecosystem becomes biggest blue-collar job creator in India! 1.5 lakh direct jobs created since PLI scheme
India revenue figures of Apple do not include export numbers, but the increase in manufacturing by the Apple ecosystem has generated more than 150,000 direct jobs since 2021. The company's largest factory in India, operated by Foxconn, employs 41,000 individuals.
During the third-quarter earnings call in August, Apple CEO Tim Cook announced that the company had achieved "quarterly revenue records in more than two dozen countries and regions, including Canada, Mexico, France, Germany, the UK, India, Indonesia, the Philippines and Thailand."
Despite Apple's success, smartphone shipments in India experienced a 2% year-on-year decline in the June quarter, according to Counterpoint Research. The market tracker attributed this decline to factors such as the heatwave, a seasonal slump, and a sequential slowdown in demand compared to the previous quarter.
Recognizing the significance of India in the current geopolitical landscape, Cook visited the country in April last year to meet with Prime Minister Narendra Modi and inaugurate the first two company-owned retail stores in Delhi and Mumbai.
During the earnings call in May, Cook emphasized the company's comprehensive approach to India, stating, "the company was working on everything — from developers to markets and operations — in India. I see it as an incredibly exciting market and as a major focus for us."