Apple ecosystem directly employed over 150,000 people after the Production-Linked Incentive (PLI) scheme for smartphones was announced in August, 2021. This made Apple the biggest blue collar job creator, announced the Union Minister on 1st April, 2024.
According to sources within the government and industry experts, the bulk of these individuals constitute first-time job seekers aged between 19 and 24. Additionally, an estimated 300,000 people have found employment indirectly, as per their estimations. Companies benefiting from incentives under the PLI scheme are mandated to furnish data on job creation to the authorities.
In the fiscal year February, 2024 saw iPhone production surpassing the Rs 1 lakh crore mark, with 70 percent of the output being directed towards exports. The total market valuation of these iPhones amounted to Rs 1.6 lakh crore.
The minister, who is also an NDA candidate from the Thiruvananthapuram Lok Sabha seat, praised Prime Minister Narendra Modi’s PLI policies, attributing them to the creation of over 4 lakh new jobs, with approximately 3 lakh individuals securing employment indirectly. He further noted that iPhone factories are expected to directly recruit more than 10,000 individuals during the peak period from June to September, as stated in his post on X.
Indian Achievements of Apple
In the financial year 2022-23, Apple’s revenue in India surged to nearly Rs 50,000 crore, witnessing a 48 percent rise in sales to reach Rs 49,321 crore. Moreover, the net profit soared by 76 percent to Rs 2,229 crore, marking the swiftest growth in net profit for Apple in India over the past five years.
Last month, the India Cellular and Electronics Association (ICEA) announced that India is on the verge of reaching the milestone of producing mobile phones worth Rs 20 lakh crore over the past decade. Additionally, in the current fiscal year (FY24), phone exports are projected to surpass Rs 1.20 lakh crore, marking a remarkable surge of 7,500 percent in exports over the span of ten years.
Developing market in India
Despite facing challenges in key markets like the United States and China, Apple has been increasingly concentrating on India, which stands as the world’s second-largest smartphone market.
Since commencing iPhone production in India in 2017, Apple has been expanding its local manufacturing operations in alignment with the PLI scheme. It collaborates with suppliers such as Foxconn, Wistron, and Pegatron to enhance its manufacturing capabilities.
Apple is actively cultivating a supplier ecosystem within India, spanning multiple states and generating over 77,000 direct employment opportunities, as stated in the report. Foxconn leads in job creation, contributing 41,000 jobs, followed by Wistron with 27,300 jobs and Pegatron with 9,200 jobs, according to the report.
Apple on a global level
The global revenue of Apple amounted to $385.706B, a 0.47% decline year-over-year. In 2023, the total number of employees were 161,000, which was about 1.83 decline from 2022.
Tech Industry leads the job creation
Apart from the trio of contract manufacturers, other significant contributors such as Tata Electronics and Salcomp Technologies play crucial roles in producing enclosures, power adaptors, cables, and batteries for iPhones. This supplier network has resulted in the creation of over 70,000 direct jobs, according to officials cited by the publication.
To further fortify its expanding ecosystem, Apple has initiated educational programs, including initiatives geared towards women’s health, through its $50 million Supplier Employee Development Fund.
Apple’s production achievements in FY24 exceeded Rs 1 lakh crore in February, surpassing PLI targets by a considerable margin and solidifying the company’s position as a prominent phone manufacturer in India.
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