Apple Plans Ambitious Expansion of Production in India, Aiming for $40 Billion

In a bold move following significant successes in India, tech titan Apple is set to exponentially scale up its production efforts, targeting a staggering $40 billion in manufacturing output. This ambitious endeavor represents a fivefold increase from the company's current production levels.

This decision comes hot on the heels of Foxconn, a prominent Taiwanese contract manufacturer and one of Apple's key partners, announcing its own plans to double its production capacity in India within a year. Foxconn is among the trio of contract manufacturers responsible for assembling iPhones in India.

During the last fiscal year, Apple's manufacturing prowess in India was evident as the company churned out products worth over $7 billion, as reported by government officials. Now, Apple has its sights firmly set on surpassing the $40 billion milestone within the next 4-5 years, marking an ambitious trajectory for the tech giant.

Presently, Apple is actively manufacturing various iPhone models in India, including the latest iPhone 15. The company is also exploring the possibility of expanding its production line to include AirPods, starting as early as next year. However, details regarding whether Apple intends to initiate the manufacturing of iPads or MacBooks within India remain undisclosed.

Interestingly, Apple's expansion strategy does not appear to include participation in the Production-Linked Incentive (PLI) scheme for IT hardware, despite the government offering incentives based on production targets. As per an official source, Apple's primary focus lies in bolstering its production capacity.

Remarkably, even at its current production levels, Apple has surged ahead to claim the title of the largest smartphone exporter from India, both in terms of quantity and the overall value of smartphones. This feat was underscored in the first half of 2023 when Apple surpassed Samsung to become the leader in smartphone exports in terms of value.

This shift can be attributed to Apple's strong presence in the premium and super-premium segments of the market, while Samsung offers products spanning various price ranges.

In recent quarters, Apple has been steadily bolstering its manufacturing capabilities in India through its contract manufacturing partners, including Foxconn, Wistron, and Pegatron. These strategic investments aim not only to ramp up iPhone production but also to commence the manufacturing of other Apple products within the country, aligning with India's growing importance in Apple's global production network.