Apple India is looking to gain more market share in the Indian smartphone industry as they have now announced the company plans to produce Rs.47,000 crores worth of iPhones for the financial year of 2022-23.
Until now, the company has only been producing and selling Rs. 10,000 crores worth of iPhones every year and so this is a big jump.
Experts of the smartphone industry have predicted that Apple is looking to shatter their Indian shipment record by selling around 7.7 million units for the current financial year. With this, they plan to increase their market share in the nation to a paltry 5.5% which doesn’t even put them in the top 5 most popular smartphone company in the nation.
They plan to heavily push out their marketing and increase the production in the country. Currently, India contributes less than 1.5% of Apple’s total revenue and therefore almost three quarters of their Indian production will be set aside for exports.
Two years ago, the government of India commenced their Production in India (PIL) scheme to entice mobile phone manufacturers to set up their manufacturing plants in India and not other Asian countries like China and Vietnam.
According to the initiative, the government will offer cashbacks to the companies that set up manufacturing plants in India worth 4-6% over the next half decade. This scheme is set to set back the government by around Rs. 40,995 crores. Out of this around Rs. 40,951 crores will be utilized to compensate the manufacturers who choose to set their plants in India. The remaining Rs. 44 crores will be utilized in administrative and other miscellaneous expenses. This is a pretty hefty amount that the Indian government has chosen to invest but it seems like they are reaping the rewards.
Many smartphone companies have made the switch to set up their manufacturing plants in India now after the introduction of the scheme. Many companies including Chinese ones like Xiaomi and Vivo have set up their units in the country. Samsung, Oppo, LG and a whole host of other companies also produce their smartphones in the country for Indians and for exports.
This will not only reduce the imports that India will have to incur but as more companies set up plants in the country, the employment opportunities will only increase and the pool of talent that India has created will be put to good use they take up the role of frontrunners in the world of tech.
