India (Common Wealth) _ In a promising sign, iPhones worth Rs 10,000 crore were exported from India in May, contributing to the month’s total smartphone exports of Rs 12,000 crore .According to the India Cellular and Electronics Association, smartphone exports in the first two months of the current fiscal year (April and May) exceeded Rs 20,000 crore ($2.4 billion), more than doubling the figure reported in the same period previous year.
Apple’s iPhones account for 80% of India’s smartphone exports, with the remainder made up of Samsung phones from Korea and other local companies. According to the report, experts believe that the April-May iPhone exports illustrate the Cupertino-based company’s efforts to make India its second home for iPhone production. India’s iPhone exports topped $5 billion in FY23, making it the first single brand to accomplish this achievement. Apple has been expanding its supply networks beyond China, with India emerging as an iPhone manufacturing hub.
Indian officials believe that Apple’s growing presence in India will serve as a model for other US companies, like Tesla, to relocate their supply chains to the nation.
The majority of smartphone exports from India, accounting for 80%, are iPhones, with the balance made up of Samsung phones from South Korea and other indigenous brands.
Prime Minister Narendra Modi’s impending visit to the United States from June 21 to June 24 is likely to strengthen relationships with other US firms.The government will aim to persuade corporations to transfer their supply chains to India, focusing on semiconductors, electric vehicles, and other industries.
On the other side, US-China relations are expected to improve as US Secretary of State Antony Blinken visits China. The US envoy met with Chinese Foreign Minister Qin Gang and plans to meet with Chinese President Xi Jinping as well.
Apple, on the other hand, has been gradually diversifying its supply chains away from China. India is one of the key options under consideration by the Cupertino behemoth. Geopolitical concerns between the United States and China, as well as India’s smartphone production-linked incentive (PLI) plan, have affected Apple’s pivot to India.
Meanwhile, according to reports, Apple is considering transferring 18% of its global iPhone production to India by 2025. The Indian government’s production-linked incentive (PLI) scheme for mobile phones is driving this decision, which tries to encourage companies like Apple and its partners to expand their operations within the country.
