Apple fastest growing firm in India over the last 50 years, ​contributes 14 per cent to tech giant’s total production

Apple has achieved remarkable growth in India, becoming the fastest-growing company in the country over the past 50 years. This surge in Apple’s presence is primarily driven by a significant increase in iPhone manufacturing and the domestic sales of its other products, such as MacBooks, iMacs, iPads, Watches, and AirPods.

The company’s operations in India reached a value exceeding Rs 2 lakh crore ($23.5 billion) in FY24, a significant jump from Rs 1.15 lakh crore the previous year.

This growth not only highlights Apple’s expanding influence in India but also marks it as the largest global value chain (GVC) operating within the country, surpassing other multinational corporations.

India’s growing contribution to Apple’s global production
India’s role in Apple’s global production has grown substantially. According to a recent Economic Survey, India now contributes approximately 14 per cent to Apple’s total production, a sharp increase from the 7 per cent contribution in FY23.

The majority of this growth comes from iPhone manufacturing, with exports of iPhones alone valued at around Rs 1.35 lakh crore ($15 billion) in the last fiscal year. This marks a significant milestone for India, as it becomes a key hub for Apple’s global exports, particularly as the company begins to shift part of its supply chain away from China.

Apple’s success 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 manufacturing iPhones in India in 2021, and the production has steadily increased through its three contract manufacturers — Foxconn, Wistron, and Pegatron.

In FY24, the total production of iPhones in India reached Rs 1.20 lakh crore, with the market value of these devices estimated at Rs 1.80 lakh crore. Of this, approximately 75 per cent of the iPhones were exported to markets in Europe, the US, West Asia, and other regions, while the remaining 25 per cent were sold locally.

Impact on employment and domestic sales
The rapid growth of Apple’s manufacturing ecosystem in India has also had a significant impact on employment. Since 2021, Apple’s ecosystem has created over 150,000 direct jobs in the country, with Foxconn’s factory alone employing 41,000 people.

This expansion has helped Apple increase its market share in India, particularly in the highly competitive smartphone market, which is largely dominated by Android-based devices from brands like Vivo and Xiaomi.

Despite the challenges posed by the dominance of Android devices, Apple’s share in the Indian smartphone market has risen steadily, from 2 per cent in FY18 to nearly 6 per cent in FY24.

The company’s India revenue reached Rs 68,000 crore in FY24, a fivefold increase from Rs 13,756 crore in FY20. This revenue growth includes not only iPhones but also a wide range of Apple products such as MacBooks, iPads, Watches, AirPods, and other accessories.

Strategic importance of India for Apple
Apple’s performance in India is particularly notable given the broader trends in the country’s smartphone market. According to Counterpoint Research, smartphone shipments in India fell by 2 per cent year-on-year in the June quarter, largely due to a heatwave, a seasonal slump, and a slowdown in demand.

Despite these challenges, Apple has continued to grow, emphasising the strategic importance of India in its global operations.

Apple CEO Tim Cook has recognised India’s potential, describing it as an “incredibly exciting market” and a major focus for the company. Cook’s visit to India in April last year, where he met with Prime Minister Narendra Modi and launched Apple’s first two company-owned retail stores in Delhi and Mumbai, underscored Apple’s commitment to expanding its presence in India.

As Apple continues to invest in India, the country is expected to play an increasingly important role in the company’s global strategy, particularly as it navigates the challenges posed by the current geopolitical environment and the need to diversify its supply chain.