Apple to manufacture iPhones worth Rs 25,000 crore under the PLI scheme

Apple’s production of iPhones in India under the government’s Production Linked Incentive (PLI) scheme is expected to cross Rs 25,000 crore mark in financial year 2023.

It is reported that Pegatron, which is one of the three vendors that manufactures iPhones for Apple, will manufacture iPhone worth Rs 7,258 crore in its first year, but will only gain benefits under the PLI scheme when it manufactures goods worth Rs 8,000 crore.

Apple’s other two vendors – Foxconn and Wistron are now planning to claim six percent PLI from the government as they have already manufactured devices at a combined worth of Rs 8,000 crore in the financial year 2022.

Initially, Pegatron will manufacture iPhone 12 smartphones in India, followed by the iPhone 13 series. These devices will be produced at a manufacturing facility in Tamil Nadu wherein the company is expected to employ around 6,000 people.

Foxconn and Wistron have already exported iPhones worth Rs 10,000 crore in the financial year 2022. This figure, when combined with the worth of devices that the two companies produced for the domestic market, is expected to be much higher and is more than the figure required to be eligible for the PLI scheme.

It is reported that in the financial year 2023, the three companies combined together have the capability to manufacture goods worth Rs 35,000 crore to Rs 40,000 crore.