Apple is projected to produce nearly $40 billion worth of iPhones in India by the end of FY26.
This ramp-up is part of Apple’s strategy to shift manufacturing away from China due to geopolitical tensions and US tariffs.
The majority of iPhones sold in the US from April–June 2025 are expected to be made in India, fulfilling about 80% of US demand and 100% of India’s domestic demand.
Apple’s Indian manufacturing partners, including Foxconn and Tata Electronics, are key to meeting these new production targets.
India’s government support, especially through the Production Linked Incentive (PLI) scheme, has helped Apple scale up local manufacturing.
India’s iPhone output could reach 70-80 million units annually by 2026, making it a primary supplier for global markets.
The shift is expected to boost India’s electronics manufacturing sector and create new jobs, while also reducing Apple’s exposure to risks in China.
Apple’s move is influenced by US tariffs that favor imports from India over China, with an estimated $900 million impact from tariffs in the current quarter.
Apple is also expanding its retail presence in India, following record sales in the Indian market.
The long-term success of this shift will depend on continued government support, competitive cost structures, and favorable trade policies.
