PLI boom: Rs 47,000 crore of iPhones likely to be made in India

Apple’s contract manufacturers are expected to make iPhones worth Rs 47,000 crore in India this fiscal, the second year of the production linked incentives (PLI) scheme that started in April. This will be almost five times the Rs 10,000 crore worth of iPhones made in the country in FY22 by Foxconn and Wistron.

Expected production for FY23 is also more than twice the requirement for the iPhone makers together to qualify for incentives for the second year under the PLI scheme for smartphones. The scheme requires each of the contract manufacturers – Foxconn, Wistron, and Pegatron – to manufacture phones worth Rs 8,000 crore. 

Market watchers expect Apple to see record shipments of around 7 million units this year, giving it its highest ever market share of 5.5%, driven by huge demand for a wider portfolio of devices and backed up by higher local production and attractive financing schemes. 

Still, India constitutes less than 1.5% of Apple’s global sales; over 60% of the production of iPhones will be for exports – one of the primary goals of the PLI Scheme said people familiar with the matter. 

iPhone production in India began in 2017 with iPhone SE and the locally manufactured range now includes iPhones 11, 12, and 13.

Wistron in Bengaluru and Pegatron, which started production this month, in Tamil Nadu mainly make the iPhone 12, while Foxconn manufactures iPhones 11, 12, and 13 at its plant in Tamil Nadu. 

One of the persons familiar with the matter said the total production of over Rs 47,000 crore of iPhones expected this financial year is possibly the largest joint output from any of the PLI schemes.