Wistron, Foxconn and Pegatron are known as the key iPhone makers for Tech giant Apple. They are all a part of the PLI scheme
Apple’s contract manufacturers including Foxconn and Wistron are on their way to meet PLI targets this year. A report by the Economic Times notes that these two companies have reaised their iPhone making capabilities in the country.
The PLI for smartphones mandates foreign companies to invest a sun of Rs 250 crore and raise their incremenal production capacity to the tune of Rs 4,000 crore during the first year. These two steps are required to become eligible for six per cent incentive as cashback.
A recent Counterpoint Research report notes that Apple’s share of made in India has increased to 76 per cent now. The same stood at arounud 17 per cent in 2018.
Despite Foxconn and Wistron picking up pace, Pegatron might not be able to meet targets this year as it still needs to starts operations in full swing at its only manufacturing facility located in Tamil Nadu. The company had previouls shared plans of training close to 5,000 individuals at this facility.
As opposed to Rs 262.27 crore profit during FY 2019, Apple has reported profits worth Rs 962.2 crore during FY 2020 from India. This 29 per cent year-on-year jump in revenue also represents a jump of nearly 267 per cent in the profits Apple made in India during FY 2020 compared to Fy 2019. The company, last year, had announced an investment of $13 million (approx Rs 1000 crore) for India. Apple, through the investments, is planning to start an online retail platform and launch physical stores in the country.
Foxconn Hon Hai, Wistron and Pegatron, all the three contract manufacturers of Apple, had got the go-ahead for inclusion in the PLI scheme announced for smartphone manufacturers in India last year. Wistron, Pegatron as well as Foxconn had announced plans to invest around $900 million in the country.