Connect with us

Company News

Apple’s iPhone production hits $10 billion mark in 10 months

Apple’s production of iPhones in India crossed the $10-billion mark during the 10-month period of April-January of the current fiscal. This is nearly 30% higher than the $7-billion production by the tech giant in FY23.

According to sources, over 70% of the total production has been exported across countries in Europe, the US and Asia.

The current fiscal is also the first year where Apple is averaging over $1 billion of production each month, compared to $620 million per month in FY23.

This production has been achieved by Apple’s three vendors – Foxconn Hon Hai, Pegatron, both in Tamil Nadu, and Wistron, now owned by the Tata Group, located in Karnataka.

According to industry data and information filed by the vendors, a lion’s share – over 70% – of the total production has been contributed by Foxconn Hon Hai. Pegatron and Wistron have together contributed the remaining 30%.

All three companies are participants in the government’s smartphone production-linked incentive (PLI) scheme. The scheme is considered by far the most successful of all 14 PLI schemes on multiple accounts – incremental production over the base year 2019-20, exports, job creation and investments.

The three Apple vendors are required to invest Rs 1,000 crore each during the five-year tenure of the PLI scheme. All three are ahead of their original investment schedules.

While Foxconn Hon Hai has already qualified for the PLI incentive for FY24, Pegatron and Wistron are expected to cross the threshold of a minimum Rs 15,000-crore production by the end of the current month. In effect, while all three companies will individually qualify for PLI in the third year, Foxconn is expected to top the threshold.

Other than Apple’s three vendors, Samsung and Bharat FIH – another Foxconn company – are significant participants in the smartphone PLI scheme. Domestic companies Lava, Bhagwati (Micromax), Padget Electronics (Dixon), UTL Neolyncs and Optiemus Electronics are also participants in this scheme. However, Apple’s vendors and Samsung have so far been leading the production in the international companies segment.

The five-year PLI scheme that started in 2020 ends in 2026, where each company had the flexibility to choose any five consecutive years.

Communications and IT minister Ashwini Vaishnaw recently told FE that after setting up their manufacturing operations in the country, big global electronics firms are now preparing to set up mega campuses in the country. These campuses will have a cluster of factories producing a range of their products. Financial Express

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Copyright © 2024 Communications Today

error: Content is protected !!