Although iPhone production escalated to $10 billion, exports were $7 billion, which is around 70 percent.
Backed by the union cabinet’s Production Linked Incentive (PLI) scheme, the Cupertino tech giant Apple has now reported to have grabbed a freight-on-board (FOB) value of $10 billion in just seven months (April-October 2024). According to union minister Ashwini Vaishnaw’s post on X, the approximate market value of this current FOB rate is measured at $15 billion, which includes sales, distribution, marketing, margins, and logistics costs.
The FOB is the factory price of the product before additional taxations and other prices are included. Reports also surfaced that along with the $10 billion production rate, there is an export of $7 billion, which is close to 70 percent. 3 percent of the productions have met the domestic demand, which the company is now looking to augment. The festive season of October has turned out to be a game-changer for the company as for the first time monthly production reached around $2 billion for the first time.
The PLI scheme for smartphones unleashed in 2020 has played a pivotal role in increasing demand and manufacturing. The total value of mobile phone production has exceeded the target, reaching Rs 6.61 lakh crore, while exports have escalated rapidly, reaching Rs 1.2 lakh crore in 2023-24, a 77-fold increase from 2014-15. The PLI scheme has also boosted employment up to 1,22,613 jobs.
Minister Viashnaw also lauded Apple for its importance in increasing employment opportunities. According to him, the firm has generated around 1,75,000 jobs in India in the past four years, with women contributing to 72 percent of the role. The increased production rate of Apple highlights India’s growing importance in the international electronics market. India will spearhead the global smartphone value chain with government incentives and private investments.
