Expected production for FY23 is also more than twice the requirement for the iPhone makers together to qualify for incentives for the second year under the PLI scheme<\/a> for smartphones<\/a>. The scheme requires each of the contract manufacturers - Foxconn, Wistron and Pegatron<\/a> - to manufacture phones worth Rs 8,000 crore.
Market watchers expect Apple to see record shipments of around 7 million units this year, giving it its highest ever market share of 5.5%, driven by huge demand for a wider portfolio of devices<\/a> and backed up by higher local production and attractive financing schemes.
Still, India constitutes less than 1.5% of Apple's global sales; over 60% of the production of iPhones will be for exports - one of the primary goals of the PLI Scheme, said people familiar with the matter.
The PLI scheme for smartphones was floated in 2020 in a bid to wean smartphone manufacturing away from China and Vietnam to India, especially amid border tensions with Beijing.
Offering incentives in the form of 4-6% cashbacks over five years, the scheme tries to offset disability in the range of 10-15% that currently exists between India and its manufacturing rivals. Total outlay for the scheme is Rs 40,951 crore over five years.
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Over the past 15 years, Apple, through contract manufacturers, built capacity to manufacture $85-90 billion of iPhones, at factory price, out of China.