The government’s Production Linked Incentive ie PLI Scheme for mobile manufacturing companies is motivating Apple to make iPhones in India. It is reported that by the year 2025, the company will make 18 percent of its total iPhone in India. At present it is 7 percent. According to the news of Economic Times, Amish Shah, India head and managing director of Bank of America, has said that we believe that India can be a reliable international supply chain option for mobile phones / electronics. There is a lot of possibility of getting success in other sectors as well. We believe India’s efforts to cut imports/increase exports could improve its macro-outlook.
Apple’s stake may increase further
Shah says that Apple can shift 18 percent of iPhone production to India by FY2025. He added that Apple’s share could increase further if its sellers are encouraged to expand in India on a larger scale.
Two retail stores have been opened in India
The Bank of America report further states that the share could increase further if Apple’s sellers expand their operations in the country, where it has opened two direct retail Apple Stores (Mumbai and Delhi). India could contribute more than 5 percent of Apple’s global iPhone sales by FY2025.
Apple’s market share
Apple’s market share in India, which currently stands at 4 per cent, is also likely to increase if locally manufactured iPhones are made more affordable for the masses. Amish Shah also pointed out that 70 per cent of the manufacturing cost of a mobile phone is related to its display, memory and chips, and these are difficult to localize in the near future due to high capex and the need for high-end technology.
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