Breaking all previous records, exports from domestic manufacturing of Apple have set a new record high for shipment in India for the April-June quarter, crossing $3.8 billion.
This has largely been due to the Centre's production-linked incentive programme that enabled Apple to reach an all-time high in the first quarter of FY25, which forms part of the broader 'China + 1' strategy, whereby firms hedge their risks by diversifying investments beyond China.
The heavy growth off the previous fiscal year was spurred on by increased manufacturing and rapid trends for premium products in Apple. Sales had reached a colossal $8 billion for the company in India, results showed, about 33 percent YoY.
That represents the continuing trend of premiumization in the nascent smartphone market in India—the second largest in the world. Industry forecasts indicate shipments in India could rise more than 20% this year with domestic production and robust distribution networks supporting the iPhone.
Experts say that Apple not only maintained the strong brand appeal it enjoyed in India but also worked on its market presence—two very important factors that propelled its growth in India.
The Government of India, in the Union Budget for 2024-25, has recommended a reduction in BCD on mobile phones, PCBA, and mobile chargers from 20% to 15%. The finance minister, Nirmala Sitharaman, says that during the past six years alone, the Indian mobile phone industry has grown three times in terms of domestic production and almost 100 times in exports. This, apparently is a sure sign of complete maturation.
The country's electronics sector grew at a fast pace, with an estimated USD 155 bn in FY23. Production has gone up manifold from USD 48 bn in FY17 to USD 101 bn in FY23; mobile phones occupied 43 percent of the overall production in electronics. The country has drastically brought down its dependence on smartphone imports, with now 99 percent of the devices produced locally.
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