Apple Inc. and its partners plan to assemble 32% of the world’s iPhone production and 26% of its total value in India by the 2026-27 fiscal year. This shift, following the end of the five-year Production-Linked Incentive (PLI) scheme for mobile devices, could lead to a production value exceeding US$ 34 billion, assuming global iPhone sales remain consistent with figures from the 2023-24 fiscal year. These projections are based on discussions between Apple, its suppliers, and government officials, although Apple did not respond to an inquiry for confirmation.
For the first half of the 2024-25 fiscal year, Apple’s suppliers are forecasting a freight-on-board (FOB) production value of US$ 9 billion, with expectations that India will contribute 17-18% of the global iPhone production volume and 14% of its value by the end of the fiscal year. In the 2023-24 fiscal year, India accounted for 12-14% of the global iPhone production volume, with a production value estimated at around US$ 14 billion. This value is projected to rise to US$ 18 billion in fiscal year 2024-25, with the market value reaching around US$ 27 billion.
The shift of iPhone production from China to India is crucial as iPhones account for 51% of Apple’s total global revenue, which amounted to US$ 391 billion for the fiscal year ending September 30, 2024. The introduction of the high-value iPhone 16 Pro series, being assembled in India, is expected to increase the value share even further, offering substantial potential for growth in India’s economy.
