Jefferies stated in its report that the increase in the US tech major's local manufacturing in India is being fueled by the mobile production-linked incentive (PLI) scheme and global supply chain diversification.
Following the global launch on Monday (Sept. 9), Apple is preparing to introduce the new iPhone 16 Pro and Pro Max models in India, while the company plans to offer the 'Make in India' versions of the iPhone 16 Pro and 16 Pro Max immediately after their global debut.
Apple is targeting an annual production of over 50 million iPhones in India as part of its plan to diversify its manufacturing away from China.
iPhone exports from India surged to $12.1 billion in 2023-24, up from $6.27 billion in 2022-23, and Apple's total operations in India were valued at $23.5 billion for the last fiscal year (FY24).
Jefferies observes that while electronics exports from India are growing rapidly, there is still significant potential for further value addition.
The report also points out that electronics imports are more than double the value of exports, highlighting substantial opportunities for local sourcing.
The Indian government is providing production-linked incentives (PLI) across 14 sectors with a total allocation of Rs 2 lakh crore, and an additional Rs 70,000 crore to enhance the semiconductor and display manufacturing ecosystem.
Industry experts predict that Apple's growth in India will continue to accelerate with the launch of the new iPhone 16 series.
This expansion is expected to be driven by increased local manufacturing under the 'Make in India' initiative and bolstered by aggressive marketing strategies.