Apple's (NASDAQ:AAPL) operations in India have seen a substantial revenue increase of 48% in FY23, reaching INR 49.3K crore ($6 billion), primarily driven by product sales which accounted for 94.6% of the total. Additionally, the net profit surged by 76% to INR 2,229 crore, according to the company's Register of Company filings.
In recent strategic moves, Tata Electronics acquired Wistron Corp's (TPE:3231) iPhone manufacturing unit in Karnataka for $125 million. This plant, previously responsible for the assembly of iPhone 14 and employing around 10,000 people, is now a part of Tata's operations. Prior to this acquisition, Tata had been manufacturing Apple smartphone bodies at its plant in Tamil Nadu.
This year has also seen Apple expanding its production capabilities in India with the help of Foxconn (TPE:2354) and Jabil Inc. (NYSE:JBL). Foxconn is planning to start AirPods production at its Hyderabad facility next year after a $400 million investment. On the other hand, Jabil has already begun producing AirPods components in India.
Apple's market presence in India has been growing steadily. The tech giant sold 1.5 million units during the first week of India's festive season and initiated pre-booking for its iPhone 15 series on September 15. A study predicts that by the end of 2023, Apple's market share in India will reach 7%.
Furthermore, Apple's plans are ambitious as it aims to boost iPhone production to $40 billion in the next four to five years, having already crossed the $7 billion production threshold. Currently, India ranks as Apple's fifth largest iPhone market globally.
The company also made significant strides in expanding its retail presence in India by launching its first store in Mumbai and a second one in Delhi this year. In Q2 2023, Apple surpassed Samsung (KS:005930) in smartphone exports from India, marking a significant milestone in its growth trajectory in the country.
However, not all developments have been positive for Apple. MacTech News reported potential backlash from India's licensing fee for imported Apple items, a factor that could impact future sales and operations.
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