Apple has seen exceptional growth in India, becoming the fastest-growing company in the country over the past 50 years. This impressive rise is largely due to a significant boost in iPhone production and increased sales of other Apple products, including MacBooks, iMacs, iPads, Watches, and AirPods.
In fiscal year 2024, Apple’s operations in India surpassed Rs 2 lakh crore ($23.5 billion), up from Rs 1.15 lakh crore the previous year. This growth not only underscores Apple’s expanding footprint in India but also establishes it as the largest global value chain (GVC) operating in the country, outpacing other multinational corporations.
India’s Growing Role in Apple’s Global Production
India’s contribution to Apple’s global production has surged dramatically. Recent data reveals that India now accounts for approximately 14% of Apple’s total production, up from 7% in fiscal year 2023. This increase is primarily driven by a rise in iPhone manufacturing, with exports of iPhones valued at around Rs 1.35 lakh crore ($15 billion) in the last fiscal year. This milestone positions India as a key hub for Apple’s global exports, particularly as the company begins to shift parts of its supply chain away from China.
Apple’s success in India can be attributed to the government’s production-linked incentive (PLI) scheme, introduced in 2020 to bolster domestic manufacturing. Apple commenced iPhone production in India in 2021, and production levels have steadily risen through its three contract manufacturers: Foxconn, Wistron, and Pegatron. In FY24, iPhone production in India reached Rs 1.20 lakh crore, with a market value of Rs 1.80 lakh crore. Approximately 75% of these iPhones were exported to Europe, the US, West Asia, and other regions, while the remaining 25% were sold locally.
Impact on Employment and Domestic Sales
The expansion of Apple’s manufacturing in India has significantly impacted 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 growth has also helped Apple increase its market share in India, especially in the competitive smartphone sector, which is predominantly Android-based with brands like Vivo and Xiaomi.
Despite Android’s dominance, Apple’s market share in India has grown from 2% in FY18 to nearly 6% in FY24. In FY24, Apple’s revenue in India reached Rs 68,000 crore, a fivefold increase from Rs 13,756 crore in FY20. This revenue growth includes not just iPhones but also other Apple products like MacBooks, iPads, Watches, AirPods, and various accessories.
Strategic Importance of India for Apple
Apple’s success in India is especially notable amid broader trends in the country’s smartphone market. According to Counterpoint Research, smartphone shipments in India fell by 2% year-on-year in the June quarter due to factors like a heatwave, seasonal fluctuations, and a slowdown in demand. Despite these challenges, Apple has continued to thrive, highlighting India’s strategic importance in its global operations.
Apple CEO Tim Cook has acknowledged India’s potential, calling it an “incredibly exciting market” and a major focus for the company. Cook’s visit to India in April of last year, where he met with Prime Minister Narendra Modi and inaugurated Apple’s first two company-owned retail stores in Delhi and Mumbai, underscored Apple’s commitment to deepening its presence in India. As Apple continues to invest in the country, India is expected to play an increasingly pivotal role in the company’s global strategy, especially as Apple navigates the current geopolitical landscape and seeks to diversify its supply chain.
