Apple's iPhone production slows but steadies in May at ₹15,000 crore
Apple's India iPhone production remains strong. Vendors produced over ₹15,000 crore worth of iPhones in May. This is slightly less than previous months but still exceeds 2024 averages. Production has reached ₹84,000 crore this year, matching 2024 domestic consumption. Tata Electronics now makes 35% of India's iPhones. Future production rates depend on trade negotiations.
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
New Delhi: Apple 's India vendors produced iPhones worth more than ₹15,000 crore in May, easing slightly from the scorching pace in the preceding two months, but well ahead of the ₹10,000-11,000 crore average in 2024, according to two market research firms and industry data.Industry experts expect an average ₹15,000 crore monthly rate for the rest of the year now. As of May, Apple's vendors have already made iPhones worth ₹84,000 crore this year - both for domestic sales and exports. That equals the entire domestic consumption of calendar 2024, according to industry data reviewed by ET.This has been partly driven by a sharp rise in production in March to meet US President Donald Trump's tariff deadline. Apple's monthly run rate of India iPhone production hit a peak of ₹19,630 crore in March, as the Cupertino-based company rushed to ship devices to the US ahead of the start of reciprocal tariffs.The levy's April deadline has since been pushed to July. Trump has been threatening to impose tariffs on India-made iPhones.Domestic contract manufacturers produced iPhones worth Rs 16,600 crore in April. Both of Apple's suppliers in India - Foxconn and Tata Electronics - have ramped up production, with the latter gaining share from its Taiwanese rival.Tata Electronics, which began assembling iPhones after it acquired the Wistron facility in Karnataka in 2023, now makes 35% of the iPhones manufactured in India, compared with around 30% in 2024. Foxconn has the remaining 65% share, an analysis by the two market trackers showed.Tata also bought a 60% stake in Taiwanese rival Pegatron's plant in India in January.Last year, total revenue from iPhone assembly for Tata Electronics and Foxconn was ₹1.38 lakh crore, of which Foxconn accounted for about ₹90,000 crore and Tata Electronics, the remaining ₹48,000 crore, according to analyst data seen by ET. Devices worth ₹84,000 crore were for local sale.The duo has been the biggest beneficiary of the production linked incentive (PLI) scheme for smartphones.According to media reports, Tata Electronics has received ₹2,068 crore and Foxconn, ₹2,807 crore, in PLI incentives for FY23 to FY25.Apple, Tata Electronics and Foxconn did not respond to ET's emails seeking comment.Smartphones account for nearly 50% of Apple's revenue and the US represents nearly a third of its global smartphone shipments, according to an S&P report on Tuesday. It said India will likely make most of the iPhones shipped to the US by 2026.The company is on track to significantly increase its manufacturing capacity in India. Foxconn has begun production in a phased manner at its new Bengaluru facility, while Tata Electronics is building another plant in Hosur."It's difficult to give the future run rate as it depends on a lot of the India-US and Sino-US trade negotiations," said one of the industry executives, asking not to be named.He said local shipments of iPhones are expected to rise by 15% in 2025, from around 11 million units sold in 2024, while India is expected to cater to the majority of US demand by this year itself, going by chief executive Tim Cook's comments. Last month, he said US demand for iPhones in June would be fulfilled in large part from India.However, this prospect is riddled with uncertainty due to Trump's comments last month, exhorting Cook to make in the US whatever devices it sells in the country or face 25% tariffs.That may not be a realistic ask, given the costs. "If Apple really produced an iPhone in a US factory, considering that everything is not in place yet, my estimate is that the price will go up by at least 15-20%, that is, $150-200," said Neil Shah, vice-president at Counterpoint Research. "We believe this cost increase will be mostly due to the cost delta of labour, factories' amortised capex and logistics."India is expected to be a big winner in smartphone manufacturing in 2025 despite global output forecast to decline by 1% due to tariff impacts and a broader industry slowdown, according to Counterpoint Research.The firm expects smartphone manufacturing in India to grow in the double digits to reach a record 20% share of global output, fuelled by export demand from Apple and Samsung.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
36 minutes ago
- Time of India
Israel Targets Iran's Nuclear Sites, Kills Top Generals
Live Events Israel launched strikes across Iran on Friday morning , targeting nuclear facilities and killing top military commanders in a major escalation against its chief adversary that risks sparking a broad war in the West strikes were far more extensive than those Israel carried out against Iran last President Donald Trump urged Iran to accept a nuclear deal with Washington to avoid further attacks, which Prime Minister Benjamin Netanyahu vowed would probably happen over the coming days as Israel looks to deal a severe blow to Tehran's nuclear programme. Tehran must make a deal 'before it is too late,' he said it struck around 100 targets across Iranian cities on Friday morning, using 200 fighter attacks caused oil to surge as much as 13%, though it later pared its gains, and investors to buy havens such as gold and US were heard across Tehran, Natanz—home to a key atomic site—and other cities, according to local and social media. Netanyahu said Israel 'struck at the heart of Iran's nuclear-enrichment programme.'The head of the Islamic Revolutionary Guard Corps, Hossein Salami, and the military's chief of staff, Mohammad Bagheri, were both killed, according to Iranian media. At least two other senior IRGC members also quickly responded by calling the attack 'a declaration of war" and sending a wave of drones toward Israel, though it was unclear if they caused any damage. Some were intercepted over Friday, Iran's Revolutionary Guards said they carried out more attacks against targets in Israel in retaliation for the latter's biggest attacks ever against responders said 7 people were injured in central Israel after an Iran missile state TV said at least one Israeli fighter jet was downed by air defence and its pilot expects Iran to retaliate with more drone strikes and also by firing ballistic missiles, according to a military official speaking on condition of evening fell on Friday, Iranian media reported explosions on the northern and southern outskirts of Tehran and at Fordow, near the holy city of Qom, a second nuclear site which had been spared in the first wave of attacks. 'The risk of this conflict expanding is real,' said Bilal Bassiouni, head of risk forecasting at advisory firm Pangea-Risk. 'Iran is under intense pressure to respond beyond drones, and a strike on Israeli military or strategic infrastructure, including energy or nuclear-linked facilities, is plausible.' The UN's atomic watchdog said there were no indications of increased radiation levels at Iran's main uranium-enrichment site of Natanz, an early sign the strikes haven't penetrated the layers of steel and concrete protecting the Islamic Republic's nuclear in the region condemned Israel's attack, while leaders around the globe called for immediate de-escalation from both sides. The Israeli Air Force said the Natanz strike hit an underground multi-story chamber with centrifuges and other infrastructure, causing 'significant damage'.Netanyahu said the strikes 'will continue for as many days as it takes to remove this threat.' Israel's UN ambassador said it was possible that the operation takes nuclear facilities, the initial phase of the strikes targeted Iran's air defenses and missile-production media said at least 95 people were wounded and that several residential buildings in the capital's suburbs were hit. Iran hasn't yet released an official death said Friday's strikes were 'very successful,' adding that Israelis would need to prepare for a retaliation and prepare to spend long periods in Supreme Leader Ayatollah Ali Khamenei said Israel will 'pay a very heavy price' and should 'expect a severe response from Iran's armed forces'. While Trump said he knew about Israel's operations in advance, it's unclear if he had much notice. As recently as Thursday he'd suggested he was against strikes, saying his administration remained 'committed to a Diplomatic Resolution to the Iran Nuclear Issue!Yet speaking to an ABC reporter on Friday, he said Israel's attack had 'been excellent'. 'We gave them a chance and they didn't take it,' Trump said of Iran and its nuclear talks with the US. 'They got hit about as hard as you're going to get hit. And there's more to come.'The US was 'not involved' in Israel's strikes, Secretary of State Marco Rubio said. He warned Iran against targeting US interests or personnel in US and Iran were meant to meet for their next round of nuclear talks on Sunday in Oman. It's unclear if those negotiations will still happen. Oman's government — in the first comments from a Gulf state — said Israel's actions were reckless and would undermine regional Arab states echoed those comments, including Saudi Arabia, the United Arab Emirates and UK's Prime Minister Keir Starmer urged 'all parties to step back and reduce tensions urgently' and said 'escalation serves no one in the region'.Regional crisisThe attacks risk plunging the Middle East — which has been mired in various conflicts since militant group Hamas attacked Israel from Gaza in October 2023 — even deeper into crisis and hitting the global countries closed their airspace, including Israel, Iran, Iraq, Syria, and Jordan. That's forcing airlines to fly longer routes, adding to fuel costs and disrupting schedules.'Risks are high this will escalate into a broader regional conflict,' say Bloomberg Economics analysts including Jennifer Welch, Adam Farrar and Tom Orlik. The clearest hit to the global economy will come via higher energy prices, they said.'Israel's alarming decision to launch airstrikes on Iran is a reckless escalation that risks igniting regional violence,' Senator Jack Reed, the top Democrat on the Senate Armed Services Committee, said in a statement. He said Trump and other nations need to push for 'diplomatic de-escalation before this crisis spirals further out of control.'Republican politicians refrained from criticising Israel and largely said the country was provoked by Defense Minister Israel Katz said it was a 'preemptive strike,' with the country's officials saying they had evidence Iran was planning an has repeatedly insisted that its atomic activities are for peaceful, civilian purposes only. But it has significantly expanded uranium enrichment since 2019 — a response to Trump's withdrawal the year before from a 2015 nuclear deal signed under Barack Obama's administration.
Time of India
37 minutes ago
- Time of India
Fidelity Adjusts Lens, Kart Valuation Surges to $6.1B
Live Events A fund managed by US-based Fidelity has marked up the valuation of omnichannel eyewear retailer Lenskart by over a fifth to $6.1 billion at April-end, according to a monthly portfolio holdings update by the financial services marks a 21% increase of the company's fair value in Fidelity's books compared to the $5 billion valuation at which it acquired the shares in June 2024 during a secondary transaction that also saw Singapore's Temasek join Lenskart's roster of blue-chip funds such as Fidelity, which invest both in publicly traded and privately held companies, periodically review the valuation of their portfolio value is ascertained on the basis of a number of factors, including financials shared with investors, market conditions and the performance of comparable inception in 2010, Lenskart has closed nearly $2 billion in funding, including secondary deals. It is due to set up its largest eyewear manufacturing facility in Telangana with an investment of about ₹1,500 eyewear retailer is considering a $1 billion public offering at a potential $10 billion valuation, double that of its last funding round, ET reported this month, Lenskart converted into a public company by changing its registered name from Lenskart Solutions Pvt Ltd to Lenskart Solutions Ltd through a special resolution passed by shareholders. It had closed a $200 million secondary round last June at a $5 billion round saw investments from Singapore's sovereign fund Temasek and Fidelity. Separately, in July 2024, Lenskart founders Peyush Bansal, Neha Bansal, Amit Choudhary, and Sumeet Kapahi had invested almost $20 in March 2023, Lenskart had raised $600 million from Abu Dhabi Investment Authority and ChrysCapital. Of this, $450 million was a secondary share sale, which allowed existing investors such as SoftBank and Chiratae Ventures to partially sell their stake in the company. This round had valued Lenskart at $4.5 bagged the top honour at The Economic Times Startup Awards 2024. It was named the Startup of the Year by an elite jury for its success in building a fast-growing, large-scale omnichannel consumer retail venture while creating an entirely new category.
Time of India
40 minutes ago
- Time of India
Centre clears Rs 193 crore for women's hostel, drinking water at Karnataka's Narasapura iPhone facility
Bengaluru: The Centre has sanctioned Rs 193 crore under the State Capital Investments Scheme for constructing working women's hostels and water facilities supporting iPhone contract manufacturer Tata Electronics in Kolar district's Narasapura industrial area. Tata Electronics acquired Wistron, a Taiwanese contract manufacturer, for $125 million two years ago. T he Karnataka govt approved the detailed project report and allocated funds for water supply infrastructure in the Narasapura industrial zone and neighbouring villages. According to sources, the accommodation facilities will house 6,000 women workers, with the project completion scheduled in 18 months. "In Narasapura industrial area, Tata Electronics (Wistron) is setting up a large manufacturing unit, where about 18,000 women workers are expected to be employed. Therefore, to address the drinking water requirement of the women workers and surrounding villages, the proposed drinking water scheme is necessary. In the absence of such a project, there will be difficulty in operating women-centric industrial units. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Switch to UnionBank Rewards Card UnionBank Credit Card Apply Now Undo After reviewing this, the proposal is approved," the state govt's notification said. An email sent to Tata Electronics didn't elicit a response till the time of going to the press. The central govt has already released Rs 127 crore to Karnataka's SNA (Single Nodal Agency). Karnataka industries minister MB Patil told TOI that the initiative is aimed at encouraging greater participation of women in the workforce. As part of the state's latest industrial policy, 10-15% of industrial areas have been earmarked for developing housing facilities, with a focus on supporting women to remain in the workforce. Recently, Patil took to social media to say Apple's contract manufacturing partner Foxconn will start production of iPhones at Devanahalli in June. Foxconn's 300-acre Devanahalli unit, within the Information Technology Investment Region (ITIR), is being established with an investment of Rs 21,911 crore. It is expected to be the largest iPhone manufacturing facility outside China. The Economic Times reported recently that the Foxconn facility will prioritise accommodation for its female workforce, with dormitories for 30,000 employees. Initial govt approval indicated 50,000 job opportunities. Karnataka maintains one of India's highest female labour participation ratio with a 31.5% female work participation rate, according to the 2021-22 Periodic Labour Force Survey. The state's workforce comprises 41% in agriculture and 21.5% in industry. Rural women predominantly work in agriculture, while urban women work in manufacturing and services, as per IWWAGE's report. Recent statistics from Sumita Dawra, labour ministry secretary, showed that the women worker population ratio increased from 22% in 2017-18 to 40.3% in 2023-24, while the female labour force participation rate rose from 23.3% to 41.7% during the same period. Follow more information on Air India plane crash in Ahmedabad here . Get real-time live updates on rescue operations and check full list of passengers onboard AI 171 .
