Apple's manufacturing partners in India will make iPhones worth Rs 47,000 crore this quarter.
According to The Economic Times, this will be nearly five times the Rs 10,000 crore worth of iPhones made in India for FY22 by manufacturers Foxconn, Wistron and Pegatron.
The expected production for FY23 is more than twice the requirement needed to qualify for the production linked incentive scheme (PLI) which requires both Foxconn and Wistron to make iPhones worth Rs 8,000 crore each.
Market insiders told The Economic Times they expect to see record shipments of around seven million iPhones in India this year. This will give Apple a 5.5 percent market share (its highest in the country) bolstered by local production and financing schemes.
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As per the report, India contributes less than 1.5% to Apple's global device sales, and 60% of the production volume will be reserved for exports. The PLI scheme was introduced in 2020 to compete with China and Vietnam in smartphone manufacturing.
PLI gives manufacturers incentives in the form of 4% to 6% cashbacks over a period of five years. Wistron will eye production of Rs 27,000 crore worth of Apple smartphones for FY23. Foxconn will pitch in with Rs 12,000 crore worth of iPhones and Pegatron will produce Rs 8,000 crore worth of Apple smartphones, bringing the total to Rs 47,000 crore for the fiscal year.
Sources said that Apple is working to produce phones worth $6 billion at factory price in the second year of the PLI scheme in India. Apple began making iPhones in India starting with the iPhone SE in 2017, and the range now includes iPhone 11, iPhone 12 and iPhone 13.
Wistron in Bengaluru and Pegatron in Chennai primarily manufacture the iPhone 12, while Foxconn handles production duties for iPhone 11, iPhone 12 and iPhone 13 from its plant in Tamil Nadu.
An insider told The Economic Times that the Rs 47,000 crore worth of iPhones are possibly the largest joint output from any of the PLI schemes.According to Navkender Singh, research director at IDC India, the sharp increase in production numbers will also help spur growth of the semiconductor industry in India. Singh pointed out that that the Indian government had announced a $10 billion incentive scheme for production and design of semiconductors in India last year in December.