Apple to produce iPhones worth Rs 25,000 crore under PLI scheme in India: Report

Apple’s production of iPhones in India under the government’s Production Linked Incentive (PLI) scheme is said to cross Rs 25,000 crore mark in financial year 2023 starting from April 1, 2022. According to a report by Business Standards, this three-fold jump in the minimum incremental production will happen owing to one of Apple’s vendors, Pegatron, which has pledged to manufacture a minimum of Rs 7,258 crore worth of iPhones in the country.

The report notes that Pegatron, which is one of the three vendors that manufactures iPhones for Apple in addition to Foxconn and Wistron, will manufacture iPhone worth Rs 7,258 crore in its first year. But it will be eligible to gain benefits under the PLI scheme only when it manufactures goods worth Rs 8,000 crore.

Initially, Pegatron will manufacture iPhone 12 smartphones in India. This will be followed by the iPhone 13 series. These devices will be produced at a manufacturing facility in Tamil Nadu wherein the company is expected to employ around 6,000 people.

It is worth noting that Apple’s other two vendors – Foxconn and Wistron – have already manufactured devices at a combined worth Rs 8,000 crore in the financial year 2022 starting August 1, 2021. As a result, the two companies are now planning to claim six percent PLI from the government that is guaranteed under the scheme. However, the report quoting market estimates says that the two companies have already exported iPhones worth Rs 10,000 crore in the financial year 2022. This figure when combined with the worth of devices that the two companies produced for the domestic market is expected to be much higher. It is also more than the figure required by the two companies to be eligible for the PLI scheme.

Also, Foxconn and Wistron have committed to manufacture goods worth Rs 3,000 crore in India at the end of second year, which is higher than the requirement of Rs 1,250 that is needed under the scheme. The report that in the financial year 2023, the three companies combined together have the capability to manufacture goods worth Rs 35,000 crore to Rs 40,000 crore.

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