Apple and Samsung are set to manufacture smartphones worth Rs 37,000 crore ($5 billion) in the financial year 2022 as a part of the government’s Production Linked Incentive (PLI) scheme. Interestingly, these figures will exceed the target set by the government by over 50%. Also Read - Samsung may cut smartphone production by 30 million units due to Russia-Ukraine war: Report
According to a report by The Economic Times, the target for the financial year 2022 was set to $3.2 billion (Rs 23,859 crore approximately). But the companies are expected to cross the $5 billion mark in the financial year 2022. Furthermore, the report said that the mobile phones manufactured under this category are expected to account for $2 billion in exports this year. Also Read - How to use iPhone's Background Sound feature to improve your focus
Notably, the Indian government had announced the PLI scheme along with other related schemes in 2020 in a bid to boost smartphone manufacturing in India. As a part of the scheme, the government had selected Samsung, Apple’s three contract manufacturers – Pegatron, Wistron and Foxconn’s Hon Hai and another Foxconn unit Rising Star (now Bharat FIH) for producing smartphones under the global manufacturers’ segment. Now, the report says that only three companies out of five are expected to avail incentives under the PLI scheme as Bharat FIH and Pegatron are yet to start manufacturing smartphones in this category. Also Read - Samsung showcases 200MP camera sensor with a giant cat billboard: Watch video
Pegatron, which is Apple’s second biggest manufacturer after Foxconn, is expected to start production under this segment in the next few months. Bharat FIH, on the other hand, doesn’t qualify for this scheme as it mostly makes phones with a production cost of less than Rs 15,000 per unit for Xiaomi.
“Our calculations show incremental production of about $5 billion by Samsung, Wistron and Hon Hai (Foxconn). Bharat FIH is also gearing up for the challenge in the next financial year (starting April 1), and Pegatron is expected to start production this year,” ICEA chairman Pankaj Mohindroo, told the publication.
This is the first year for production of smartphones by Apple’s manufacturers and so, they will have to produce phones worth Rs 4,000 crore this year. Samsung, on the other hand, will have to produce phones worth Rs 8,000 crore as it is availing benefits under this scheme for the second year.