Apple's Transformation in India: From Initial Struggles to Major Success
From sour start to sweet spot: How Cook changed Apple's India playbook
Business Standard
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Apple Inc. has surpassed India's cumulative production-linked incentive (PLI) target of ₹3.35 trillion, achieving ₹6.02 trillion by FY26. Under CEO Tim Cook's leadership, India has become a key manufacturing hub, producing one in four iPhones globally and generating 250,000 jobs, despite challenges from shifting trade policies.
- 01Apple exceeded India's PLI target by 80%, achieving ₹6.02 trillion in production.
- 02India now accounts for one in every four iPhones assembled globally.
- 03Apple's strategy shifted to local partnerships, enhancing its presence in India.
- 04The company generated 250,000 direct jobs in India during the PLI period.
- 05Challenges remain with changing trade policies and competition from China.
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Apple Inc. has significantly transformed its operations in India, exceeding the government's cumulative production-linked incentive (PLI) target of ₹3.35 trillion by achieving ₹6.02 trillion by FY26. Initially struggling to penetrate the Indian market, CEO Tim Cook's first visit in 2016 set the stage for a strategic pivot. After failed negotiations for duty exemptions and local sourcing norms, Apple shifted to forming local partnerships, aligning with government priorities. This change led to a successful collaboration, with India now producing one in every four iPhones globally, compared to 95% in China in 2016. The PLI scheme has facilitated a surge in exports, contributing to 75% of India's smartphone exports and generating 250,000 direct jobs. However, challenges persist due to shifting trade policies and competition from China, raising questions about the sustainability of Apple's growth in India. As Cook prepares to step down, his successor will face the task of navigating these complexities to maintain Apple's position as a leading manufacturer in India.
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Apple's expansion in India has created significant employment opportunities and bolstered the local economy, making it a crucial player in the country's electronics export sector.
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