iPhone production thrives in India: Apple surpasses PLI scheme targets
What's the story
Apple has surpassed its targets for the Production-Linked Incentive (PLI) scheme in five out of six parameters, as per a Business Standard report. The PLI scheme necessitates that a company meets minimum targets in four parameters annually to qualify for production-linked incentives. These parameters encompass incremental production value, exports, investment, and the freight on board (FoB) value.
Vendor performance
Apple's Indian vendors surpass production targets
Apple's three India vendors - Foxconn, Pegatron, and Tata Electronics - have collectively outperformed the targets set by the PLI scheme. The production value of iPhones assembled by these vendors reached ₹1,94,800 crore in 2023-24. This figure is a significant 45% higher than what was committed under the PLI scheme, as per data provided to government agencies.
Sales milestones
Apple achieves significant sales milestones in 2023
In addition to surpassing PLI targets, Apple also marked significant sales milestones in 2023. The company shipped over 10 million iPhones that year, securing the top revenue position and outperforming its Korean competitor Samsung. This data was reported by Counterpoint Research. For comparison, Apple had shipped over six million iPhones in the previous year i.e. 2022.
Market growth
Apple's market share grows in 2023
Apple's market share experienced growth in 2023, accounting for 23% of smartphone revenue share, surpassing Samsung's 21% market share. This is a significant increase from the previous year when Samsung held the top spot with a 22% smartphone revenue share and Apple had a 17% share. The data indicates a shift in consumer preference toward Apple products.
Future projections
Analysts predict further growth for Apple
Analysts forecast that Apple's smartphone volume market share could rise further to between 8 and 10% by 2024 from its current share of 6% in 2023. This prediction aligns with Apple's growing interest in India, as demonstrated by its focus on local manufacturing, the launch of retail stores, and an increased emphasis on the large format retail (LFR) model.