Apple has increased its iPhone production in India from 1 percent in 2021 to 7 percent in 2023.
The Bank of America report added that mobile phones make up 21.5 percent of India’s domestic demand for electronics.
US-based tech giant Apple could move 18 percent of its global iPhone production to India by 2025 due to the government’s production-related mobile phone stimulus, according to a new report. The arrangement could encourage Apple and its suppliers to expand their operations in the country.
The Bank of America report, spotted by the Economic Times, argues that the mobile phone PLI program could help India meet its ambitious target of tripling its domestic production to $126 billion by FY26 and a fivefold increase in exports to 55 billion dollars.
Previously, reports suggested that Apple has increased its iPhone production in India from 1 percent in 2021 to 7 percent in 2023. Earlier reports also stated that Apple aims to produce 25 percent of global iPhones sold in India by 2025.
The Bank of America report added that mobile phones make up 21.5 percent of India’s domestic demand for electronics. This huge demand is also growing at a 15 percent CAGR. According to the report, India consumed $158 billion worth of electronic goods in fiscal year 2023. Demand grew at an 11 percent CAGR in FY17-23.
However, most supplies were covered by imports. In FY23, India’s electronics imports totaled $77 billion. It was also the second-largest import bill accounting for 20% of the country’s trade deficit, the report said.
The report suggested that 70 percent of the cell phone’s cost, including the display, memory and semiconductors, is hard to pinpoint. Such schemes require massive capex and high technology.
The report highlighted that the Rs 38,000-crore PLI scheme has helped improve the export mix in local manufacturing. As a result of this arrangement, electronic exports have grown from 16 percent to 25 percent on an annual basis. This development has positioned India as a reliable global supply chain option for mobile phone and electronics manufacturers.
Apple recently opened its first 2 exclusive Indian stores in Mumbai and Delhi. CEO Tim Cook personally inaugurated these outlets in April. As part of its expansion strategy, the iPhone maker now plans to open 3 more stores in the country by 2027.
