In yet another major milestone for Apple in India, the tech giant’s Indian arm exported iPhones worth $10 billion from India in the fiscal year 2024, doubling its export value compared to the previous year.
Under the Production-Linked Incentive PLI scheme, Apple exported about 70 per cent of all iPhones made in India, making Apple and the iPhone the largest-ever exporter of a single branded product from India in terms of consumer goods.
Among the top three suppliers, Foxconn exported 60 per cent of its iPhone output, while Pegatron exported 74 per cent. Wistron’s India factory, now owned by Tata exported about 97 per cent of all the iPhones it made.
Industry estimates suggest that iPhone exports from India are set to nearly double to Rs 80,000 crore in the current fiscal year, up from Rs 40,000 crore in the last fiscal year.
On the other hand, Samsung, which has traditionally been the largest exporter of smartphones by export value, is expected to remain flat at around Rs 32,000-35,000 crore.
Surprisingly though, Apple has seen a decline of approximately 10 per cent in smartphone shipments during the first quarter of 2024, according to data from research firm IDC. During the same period, Samsung has seen a significant increase.
As a result, Apple has lost its crown as the top smartphone maker to Samsung at the end of the January-March 2024 quarter.
Coming back to Apple’s exports from India, the significant growth in Apple’s export value can be attributed to global trends favouring premium products and the higher average selling price of iPhones, which stands at around $1,000.
Additionally, the government’s PLI scheme has facilitated increased domestic production of iPhones by Apple’s contract manufacturers, meeting both local and global demand.
On the other hand, Samsung’s export value growth remains steady due to its presence across various price points, with an average smartphone price of around $250. Factors contributing to this include tepid global demand for smartphones, especially non-premium models, and lower exports of flagship smartphones such as the S series from India.
Apple’s production of iPhones in India exceeded $10 billion during the April-January period of the current fiscal year, with exports accounting for over 70 per cent of this production.
Meanwhile, Samsung’s monthly exports are estimated at around $350 million.
In terms of overall projected figures for smartphones exported from India in FY24, Apple is expected to contribute around 70 per cent, while Samsung’s share is estimated at around 25 per cent. The remaining portion is anticipated to come from exports by other brands like Lava, Motorola, and Vivo.
Overall, domestic smartphone production in FY24 is expected to grow by 17 per cent year-on-year to Rs 4.1 trillion, according to the India Cellular and Electronics Association (ICEA).
Although Samsung aims to increase its exports from India, Vietnam currently serves as its primary exporter due to its well-established ecosystem, which also manufactures some key components like displays.
Analysts highlight that Apple and Samsung are engaged in a volume versus value game, with Apple’s higher ASP or Average Selling Price giving it an edge. This suggests that Samsung needs to focus on manufacturing more flagship series smartphones in India to boost its export value.
