Whalesbook
Record Export Milestones
Apple Inc. has shattered export records, shipping an estimated $50 billion worth of iPhones from India by December 2025. This significant achievement follows the tech giant's entry into the Production Linked Incentive (PLI) program in fiscal year 2022. With three months left in the current PLI scheme, the cumulative export tally is expected to climb even higher.
The PLI Scheme Advantage
The data reveals that in the first nine months of fiscal year 2026 alone, Apple exported nearly $16 billion, pushing the total beyond the $50 billion mark within the PLI period. This initiative has been crucial in attracting major global manufacturers to set up production bases in India. Samsung, a key competitor, shipped approximately $17 billion worth of devices during its applicable five-year PLI period from FY21 to FY25.
Expanding Manufacturing Ecosystem
Currently, five major iPhone factories operate in India, with three managed by Tata and two by Foxconn. These facilities anchor a robust supply chain involving nearly 45 companies, including numerous MSMEs, that produce components for both domestic and global markets. This ecosystem has propelled the smartphone category to become India's top export item in FY25, accounting for 75% of overall smartphone shipments.
Future of Indian Electronics Manufacturing
As the current smartphone PLI scheme concludes in March next year, the government is exploring mechanisms to sustain industry support. Officials indicated plans to devise new incentives in consultation with industry stakeholders to further promote manufacturing. Acknowledging existing challenges compared to competitors like China and Vietnam, the government remains committed to offering support to bridge the manufacturing disability.
While some mobile phone exports occurred before the PLI scheme, the real impetus came with Apple's strategic decision to shift its suppliers to India, establishing it as a manufacturing hub outside of China. The PLI scheme's extension by one year due to initial target shortfalls by companies like Apple and Dixon, exacerbated by the pandemic and geopolitical tensions, allowed for strategic adjustments. Samsung had met its targets early due to existing infrastructure, while others utilized the extended term. To maintain momentum, Apple vendors and Samsung have been included in the electronics component manufacturing scheme, with Samsung producing display modules and Apple vendors contributing over 60% of investments and employment generation under the second tranche of the scheme, involving key players like Motherson, Tata Electronics, ATL, and Hindalco.