Apple's iPhone exports from India have witnessed exponential growth, surpassing $2 billion in value within the first two months of the current fiscal year 2025.
Foxconn, Apple's leading vendor, has played a key role in strengthening the supply chains, contributing 65% of the total iPhone exports from India so far this fiscal year.
This remarkable increase in iPhone production and exports from India is part of Apple's long-term strategy to diversify its manufacturing operations beyond China. Over the past few years, Apple's iPhone production in India has steadily expanded, and the company now aims to manufacture 25% of its global iPhone supply in the country by 2028.
In the first two months of fiscal year 2025 (FY25), Apple's iPhone exports from India have surpassed $2 billion, accounting for 81% of the country's total iPhone production valued at $2.6 billion. This represents a significant ramp-up in Apple's manufacturing and export operations in the country.
In May, Apple continued its strong performance from April, surpassing $1 billion in iPhone exports for the second consecutive month. This growth is driven by the production-linked incentive (PLI) scheme, under which Apple's three vendors in India are committed to achieving a production value of $10.2 billion, including exports. These vendors have already achieved 25% of this target in just the first two months of FY25.
Foxconn Hon Hai, Apple's leading vendor, contributed 65% of the total iPhone exports in FY25 so far, while Wistron and Pegatron contributed 24% and 11%, respectively. All three vendors are participants in the smartphone PLI scheme and are in the fourth year of the five-year program.
In the previous fiscal year (FY24), Apple closed with a total iPhone production value of $14 billion in free-on-board (FOB) value, which would translate to nearly $22 billion in market value. During that year, Apple exported $10 billion worth of iPhones from India, accounting for 70% of the FOB value of the year's production.
The growing iPhone exports have driven India's mobile phone exports to $15.5 billion in FY24, a nearly 40% increase from the previous year. Electronics exports, led by mobile phones, have risen from sixth place in FY23 with an export value of $23.6 billion, to fifth place in FY24 totaling $29.1 billion, a 23% increase over the previous year. The iPhone exports constituted 35% of India's total electronics exports and 65% of its total mobile phone exports in FY24.
Apple has continuously expanded its production and exports from India over the past three years, exceeding $1 billion in exports each month during non-peak periods such as April and May. Typically, Apple's production for the Indian market peaks ahead of the festive season between July and October, with the new iPhone model launching in September. Apple's exports peak from October to December as Indian factories supply iPhones to Western markets during Black Friday, Thanksgiving, and the Christmas and New Year holidays.
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