Apple's India Operations Surpass Rs 2 Lakh Crore, Marking Unprecedented Growth in Global Value Chain

Apple's India business has achieved a significant milestone in FY24, with its operations exceeding Rs 2 lakh crore ($23.5 billion) in value—a remarkable surge from Rs 1.15 lakh crore the previous year. This growth is largely driven by a substantial increase in iPhone production and robust domestic sales of MacBooks, iMacs, iPads, Watches, and AirPods.

Top officials have highlighted that the pace of Apple's production and export growth in India over the last 50 years is likely the fastest seen by any company. This extraordinary expansion has established Apple as the largest global value chain (GVC) operating within the country. Apple is also the first GVC in India to strategically shift a portion of its supply chain away from China.

The rapid acceleration of Apple's operations in India can be attributed to the government's smartphone production-linked incentive (PLI) scheme introduced in 2020. Apple began manufacturing iPhones in India in 2021, marking the first time the company produced iPhones outside China. Since then, production has steadily increased through its three contract manufacturers—Foxconn, Wistron, and Pegatron—reaching Rs 1.20 lakh crore in FY24. The government provides incentives based on the freight on board (FOB) value, with market or retail prices being 50-60% higher.

As noted in the Economic Survey, India's contribution to Apple's overall production has grown to approximately 14%, positioning the country as a crucial hub for the company's global exports. In FY23, this share was around 7%. According to official data, iPhones dominate these figures, with exports valued at approximately Rs 1.35 lakh crore ($15 billion) in the last fiscal year.

Domestic sales of Apple products in India reached approximately Rs 68,000 crore ($8 billion) in FY24. Despite Apple's increasing market share in India—from 2% in FY18 to nearly 6%—the dominance of the Android ecosystem, led by Chinese brands like Vivo and Xiaomi, remains strong. India's revenue contribution to Apple's global revenue of $383 billion in FY23 was less than 2%.
While India’s revenue figures for Apple do not include export numbers, the manufacturing boost within the Apple ecosystem has created over 150,000 direct jobs since 2021. The largest factory, operated by Foxconn in India, employs 41,000 people.

During the third-quarter earnings call in August, Apple CEO Tim Cook announced that the company had achieved "quarterly revenue records in more than two dozen countries and regions, including Canada, Mexico, France, Germany, the UK, India, Indonesia, the Philippines, and Thailand."

Despite Apple's impressive growth, smartphone shipments in India saw a 2% year-on-year decline in the June quarter, according to Counterpoint Research. The decline was attributed to factors such as the heatwave, a seasonal slump, and a slowdown in demand compared to the previous quarter.

Acknowledging India's importance in the current geopolitical climate, Cook visited the country in April last year to meet with Prime Minister Narendra Modi and inaugurate the first two company-owned retail stores in Delhi and Mumbai.

In a May earnings call, Cook underscored the company’s comprehensive strategy for India, stating, "the company was working on everything—from developers to markets and operations—in India. I see it as an incredibly exciting market and a major focus for us."