PLI scheme: Apple to manufacture iPhone worth Rs 47,000 crore in India this year

Apple’s contract manufacturers – Pegatron, Wistron and Foxconn – are expected to manufacture iPhones worth Rs 47,000 crore in India in fiscal year 2022 – 2023. Of this figure, Wistron is expected to manufacture iPhones worth Rs 27,000 crore, while Pegatron and Foxconn are expected to manufacture iPhones worth Rs 12,000 crore and Rs 8,000 crore respectively.
According to a report by The Economic Times, this figure is almost five times more than Rs 10,000 crore worth of iPhones that the three companies manufactured in the fiscal year 2021 – 2022. It is also twice the minimum requirement that the three companies require to get benefits in the second year under the government’s Production Linked Incentive (PLI) scheme. Together, the three manufacturers were required to manufacture iPhone worth Rs 8,000 crore to qualify for the benefits in the second year of the scheme.

Furthermore, the report quoting analysts said that the company is expected to ship around seven million iPhone units this year, which translates into a 5.5 percent market share. This growth is an outcome of more affordable financing schemes, and higher local production among other things.

Interestingly, Apple has a market share of just 1.5 percent in India and over 60 percent of the iPhones produced in India will be used for exports in other markets across the globe, the publication wrote.

Apple began manufacturing iPhones in India with the iPhone SE back in 2017. Over the years, it has added the iPhone 11 and the iPhone 12 series smartphones to the list. More recently, the company started manufacturing the iPhone 13 series smartphones in the country.

An older report states that two of the company’s three vendors – Foxconn and Wistron manufactured iPhones at a combined worth of Rs 8,000 crore in the financial year 2021 – 2022. Due to this, the two companies are eligible to get six percent of the PLI from the government as a part of the scheme. However, the two companies have already exported iPhones worth Rs 10,000 crore in the past fiscal year 2021 – 2022. This figure is required by the two companies to be eligible for the PLI scheme in the first year.

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