India is gradually becoming one of the leading players in domestic manufacturing due to the PLI scheme. A dramatic example of this transition is the tech firm Apple, which recorded nearly USD 8 billion in sales in India in the last fiscal year (FY24), which is an increase of nearly 33 percent year on year. Iphones are primarily responsible for the increase in Apple’s growth as the trend of premiumization gradually gains momentum in the world’s second-largest smartphone market. It is not only that Apple is recording high domestic sales, but its export figures are also through the roof. Projected industry growth has been estimated to be at 20 percent in the shipment of iPhones this year, benefited by robust domestic manufacturing and an extensive distribution channel.
Tarun Pathak, Research Director at Counterpoint Research, says that premiumization has started, and Apple is all set to capitalize on this with its devices and financing facilities. The brand pull and the growing channel access in the country have also helped it to grow faster.
This emerging trend helps in enhancing the India’s PLI scheme to a great extent as the exports of mobile phones gain a considerable push. On the other hand, mobile phone exports from China reduced from USD 136.3 billion in FY23 to USD 132.5 billion in FY24. Likewise, Vietnam recorded a reduction from USD 31.9 to USD 26.27 billion in the last fiscal year.
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