Apple’s Record-Breaking iPhone Exports from India Reach $7 Billion in 7 Months

Apple has set an unprecedented benchmark in smartphone exports, with its iPhone exports from India reaching Rs 60,000 crore (approximately $7 billion) in the first seven months (April-October) of the current fiscal year. This achievement, equating to an average of $1 billion in exports per month, marks a significant milestone in the global smartphone market, according to industry sources.

The surge in exports is attributed to the smartphone production-linked incentive (PLI) scheme launched in 2020, which has driven Apple to shift a considerable portion of its manufacturing operations to India. Despite an inquiry, Apple’s global spokesperson had not provided a comment at the time of publication.

Expansion in iPhone Models and Production

Apple’s export portfolio from India now includes not only iPhone 14, 15, and 16 models but also, for the first time, the high-value Pro and Pro Max models. The company began producing iPhone 16 Pro and Pro Max locally in October, with these models valued at nearly 1.5-2 times more than standard iPhone models.

In its initial year (FY22), Apple’s exports from India were approximately $1.2 billion. By FY23, the figure had more than quadrupled, reaching $5 billion. Last fiscal year, Apple doubled its exports, touching $10 billion. Remarkably, within the first seven months of the current fiscal year, Apple has already achieved 70% of last year’s total export numbers.

Major Markets and Growth Trends

iPhones manufactured in India are exported to key markets such as Europe, West Asia, and the US. The US market, in particular, has seen a significant boost in smartphone imports driven by iPhone exports. Prior to the PLI scheme in FY19, India’s smartphone exports to the US were valued at a mere $5.23 million, positioning smartphones as the 23rd largest export item to the US. In FY24, this figure skyrocketed to $5.56 billion, making smartphones the second-largest export from India to the US, following diamonds.

For the April-August 2024 period, smartphone exports reached $2.8 billion, surpassing diamond exports of $2.1 billion in the same timeframe. This growth represents a 51% increase from the $1.9 billion in smartphone exports recorded in the April-August period of the previous year.

Manufacturing Capacity and Future Projections

In FY24, Apple’s production of iPhones in India totaled $14 billion, the highest by any company, contributing around 14% of Apple’s global iPhone production. Industry analysts project that by 2026, Apple could shift up to 26% of its global iPhone manufacturing capacity to India.

The rapid expansion and robust growth in iPhone exports underscore India’s increasing importance as a strategic hub for Apple’s global supply chain, bolstered by the successful implementation of the PLI scheme and strong local manufacturing partnerships with Foxconn, Pegatron, and Tata Electronics.