Apple Plans Ambitious iPhone Production Ramp Up In India, Targets $12B Value By 2023-24
Portfolio Pulse from Shomik Sen Bhattacharjee
Apple Inc. (AAPL) is set to increase iPhone production in India, targeting a $12 billion FOB value by 2023-24, exceeding its initial plan and its full-year commitment under India's PLI scheme. With $9.4 billion worth of iPhones already produced in the first three quarters of FY 2024, only a quarter will be sold in India, while the rest are for export. Apple's India sector turnover was $5.94 billion for FY23, 1.5% of its global turnover. Exports peaked at 80% in Q4 FY 2024, coinciding with the iPhone 15 launch and festive demand. JP Morgan forecasts that by 2026, up to 25% of iPhone production could shift to India.

January 18, 2024 | 6:21 am
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POSITIVE IMPACT
Apple's ambitious production increase in India, targeting $12 billion in value, signifies a strategic shift in its supply chain and could positively impact its stock as it exceeds PLI scheme targets and aligns with global demand patterns.
Apple's significant increase in production capacity in India and the successful export strategy, especially with the alignment to the global launch of iPhone 15, suggests a positive outlook for the company's revenue and supply chain diversification. This could lead to increased investor confidence and a potential rise in AAPL's stock price in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90