Apple iPhone exports from India double to over $12 billion in FY24: Report

Apple's iPhone exports from India have seen a significant rise, with figures nearly doubling from $6.27 billion in the fiscal year 2022-23 to $12.1 billion in 2023-24, as reported by The Trade Vision. This growth is part of a larger surge in total smartphone exports from India, which increased to $16.5 billion from $12 billion over the same period.

Factors Driving Growth

Several factors have influenced Apple's decision to enhance its manufacturing footprint in India. The need to diversify the supply chain and reduce risks related to geopolitical tensions are primary considerations. Additionally, capitalising on India's expanding consumer market has been a significant motivator. Government incentives, particularly the Production-Linked Incentive (PLI) scheme, have also played a crucial role in encouraging Apple and other tech giants to invest more in local manufacturing capabilities.

Impact on the US Market

The expansion of India's role in Apple’s manufacturing strategy has had notable effects on international markets, especially the United States. The US remains the largest importer of smartphones from India, with imports totaling about $6 billion in the fiscal year 2023-24. Out of this, iPhones made up $5.46 billion, marking a substantial increase from the $2.1 billion recorded in the previous fiscal year.

Further Expansion of Apple's Supply Chain in India

A new report by ET claims that Apple is in talks with Tata Group's Titan and Chennai-based Murugappa Group to manufacture camera modules for iPhones in India. Currently, the company assembles iPhones in India but the camera modules are still imported. The manufacturing of camera modules in India will further reduce Apple's dependence on the Chinese market.

With inputs from agencies.