Locally manufactured iPhones dominate the Indian market as Foxconn and Winston increase production
Photo by Daniel Romero on Unsplash
- iPhone manufacturers in India have increased production in the last few quarters.
- The market share of Made in India increased from 17% in 2018 to 76% in 2021.
- Its third partner is unable to start production due to COVID-related travel restrictions.
AdvertisementApple iPhone manufacturing partners, Foxconn and Winston, have increased their production in India to be on target to achieve this year’s goals and gain an advantage under the production-linked incentive (PLI) scheme. As per a report in ET, the last few quarters saw a rise in the production of the iPhone for Indian consumers and exports.
As per Counterpoint Research, the Indian market’s share of domestically manufactured iPhones increased 17% in 2018 to 76% in 2021. The iPhone exports from India increased to 5% from nil a couple of years ago.
To take advantage of the handset PLI scheme, foreign companies must invest ₹250cr and produce an incremental output of ₹4,000cr in the first year to receive a 6% direct incentive as cashback.
As per the report, both the companies could not achieve their target last year, but the pace has picked up and they are on track to reach their target. Since the export manufacturing rate has improved, the India-made iPhones are being sold in European markets.
Pegatron unable to start production
Even though Foxconn and Winston are growing, Apple’s third manufacturing partner, Pegatron, is unable to begin production at its Tamil Nadu-based plant due to pandemic-related travel restrictions. The company had planned to train 5,000 people and install imported machinery, but the restrictions have made it difficult to begin production.
All three manufacturers fall under the Centre’s PLI scheme and have together promised to make iPhones worth ₹3.6 trillion in India in five years, out of which 80 per cent are expected to be exported.
As per Tarun Pathak, the research director at Counterpoint Research, both Winston and Foxconn will reach their fiscal targets by March 2022 given the increase in demand for iPhone in the Indian market. To date, Apple’s best year of manufacturing in India was in 2017, when it shipped 3.2million units. In 2020, it had shipped 3.1million units despite the pandemic.
As per Pathak, the number will increase to 4 million units this year. The one-year extension granted to Apple’s partners under the PLI scheme will also help them further their business.
Apple iPhone 13 in India
AdvertisementApple unveiled its iPhone 13 series earlier this month and opened pre-orders and sales in India in the first phase alongside developed countries like the US, UK, Germany and others for the first time in its launch history.
According to the report, the early availability of the iPhone will help Apple grow its revenue in India to $3billion. Currently, Foxconn assembles iPhone 12 and iPhone 11, while Winston is manufacturing iPhone SE 2020. Apple still imports the Pro models to India.
With the addition of Pegatron, the production numbers are likely to increase manifolds.
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