Apple vendors lead job creation in India with over 1 lakh opportunities: Report

The report noted that Apple’s vendors and component suppliers in India have contributed to the creation of these jobs by supporting the production of iPhones through the government’s Production Linked Incentive (PLI) scheme.

Since the implementation of the PLI scheme in August 2021, the vast majority of these 100,000 new jobs have been created in the past 19 months, as per the report.

The three key vendors assembling iPhones – Foxconn Hon Hai, Pegatron, and Wistron – have collectively produced 60 percent of the newly created jobs. This figure is around 7,000 jobs higher than their second-year commitment under the scheme.

According to the report, the remaining 40 percent of jobs have been generated by Apple’s ecosystem, which includes suppliers of components and chargers. These suppliers, including companies like Tata Electronics, Salcomp, Avary, Foxlink, Sunwoda, and Jabil, have collectively produced an additional 40,000 jobs.

The employment figures are based on the data provided by the three iPhone vendors and the companies in Apple’s ecosystem, who are obligated to report their employment numbers regularly to government authorities.

Foxconn Hon Hai, based in Tamil Nadu and exclusively manufacturing iPhones, has created over 35,500 jobs, which is more than a third of the total jobs generated. Pegatron, also based in Tamil Nadu and starting its production this financial year, has become the second-largest employer with 14,000 jobs, while Wistron in Karnataka has generated 12,800 jobs

When contacted by Business Standard (BS), an Apple Inc spokesperson did not respond to queries regarding the employment numbers. However, sources within the supply chain have indicated to the publication that Tata Electronics, a key component supplier for mechanical parts used by Apple, has employed a significant number of workers.

According to the report, other significant job creators include Salcomp with over 11,000 employees, as well as Jabil, Foxlink, and Sunwoda.

As per a press release issued in October 2020, it was estimated that the smartphone PLI scheme would create two lakh direct jobs within a period of five years.

The government has also projected that for every direct job created in electronics manufacturing, nearly three times the number of indirect jobs are also generated. Based on this estimate, the total number of direct and indirect jobs created by the Apple ecosystem would be approximately three lakh.

Moreover, the India Cellular and Electronics Association estimates that mobile device manufacturers and their suppliers have created around two million jobs, both directly and indirectly, over the past seven years.

In December 2022, Apple became the first company to export more than $1 billion worth of iPhones within a single month. According to a report, between April and December 2022, the company had exported over ₹30,000 crore worth of iPhones, which made up approximately 40% of the total value of smartphone exports from the country during that period.