During his visit, Indian government officials likely to talk to Cook on boosting iPhone production in the country
Apple is also undertaking several community development and social projects in India
In FY 2022-23, $5 Bn worth of India produced iPhones were exported
Assumptions are, during the visit, Cook will meet Prime Minister Narendra Modi, Bloomberg reported. Government officials are likely to propose increased engagement of the tech giant in India, and not limit only to the bare minimum of the production-linked incentive (PLI) scheme for mobile devices.
Tech giant Apple and supplier Foxconn have been upbeat about the Indian market for quite a while. From opening Apple stores to developing manufacturing and assembling sites, India has been a new favourite of the Cupertino-based company.
During the declaration of the company’s earnings for the December quarter, Cook said, “I’m very bullish on India,” and addressed the Indian market as an ‘exciting one’. He further added that Apple is “putting a significant amount of energy” into the country.
As per its revenue declaration statement, Apple has reached the milestone of an all-time revenue record of $20.8 Bn despite a difficult macroeconomic environment and significant supply constraints. The company has returned more than $25 Bn to the shareholders during the mentioned quarter while continuing to invest in the long-term growth plans.
As Apple tries to reduce dependence on China amid the increasing tensions with the US, production of iPhones at the Indian units by the tech giant’s contract manufacturers tripled to $7 Bn in the financial year 2022-23 (FY23).
In fact, in the last fiscal year, $5 Bn worth of iPhones produced in India were exported, the report suggests.
In addition to Apple, its supplier Foxconn plans to invest up to $1 Bn to set up a manufacturing facility on the outskirts of Bengaluru.
Apple has been engaging with India to not just assemble and manufacture iPhones and other products but also for several other social initiatives:
- In March this year, Apple announced a partnership with NGO Frank Water to strengthen India’s water management system and improve sanitation standards in the country
- The company has also partnered with Applied Environmental Research Foundation (AERF) to preserve mangroves along India’s coast.
- A pioneer in tech, the company has partnered with Barefoot College to train rural women of India to become solar engineers in the local communities.
According to Bloomberg’s sources, Apple is undergoing some major global reshuffling to target India as an all-new and separate market for its products, especially iPhones.