Apple Inc.’s iPhone exports from India surged 75% year-on-year to $10 billion in the first half of fiscal year 2026 (April-September 2025), reinforcing India’s role as a global manufacturing hub, according to reports from Economic Times and Business Standard on October 8, 2025. For tech analysts, exporters, and investors searching iPhone exports India 2025, Apple India manufacturing FY26, or Make in India smartphone exports, this growth—driven by Foxconn, Pegatron, and Tata’s new plants—positions India to capture 25% of Apple’s global iPhone production by 2027, up from 14% in 2024. The $10 billion export figure, equivalent to ₹84,000 crore, reflects 10 million iPhones shipped, primarily to the U.S., Europe, and the Middle East, boosting India’s $30 billion smartphone export market. Supported by India’s Production-Linked Incentive (PLI) scheme and reduced import duties, Apple’s expansion contrasts with Tesla’s modest 61-car sales in India, highlighting India’s strength in electronics over automotive EVs.
This milestone underscores the success of the Make in India initiative, with Apple’s local production now employing 200,000 workers and targeting $20 billion in annual exports by FY27.
iPhone Export Surge: H1 FY26 Breakdown
The 75% export growth to $10 billion in H1 FY26 (April-September 2025) reflects robust demand for iPhone 16 and 17 models, assembled in India.
- Export Value: $10 billion (₹84,000 crore), up from $5.7 billion in H1 FY25.
- Units Shipped: ~10 million iPhones, with 60% being iPhone 16 Pro and 17 models.
- Key Markets: U.S. (40%), Europe (30%), Middle East (15%).
- Manufacturers: Foxconn (60%), Pegatron (25%), Tata (15%, via acquired Wistron plant).
- Domestic Sales: 3 million iPhones sold in India, generating ₹24,000 crore ($2.9 billion).
Union Minister Piyush Goyal: “Apple’s export surge is a testament to Make in India’s global impact.”
| Metric | H1 FY25 | H1 FY26 | % Growth |
|---|---|---|---|
| Export Value | $5.7B | $10B | 75% |
| Units Shipped | 6M | 10M | 67% |
| Domestic Sales | ₹14,000 Cr | ₹24,000 Cr | 71% |
| Workforce | 150,000 | 200,000 | 33% |
Drivers of the Export Surge
Several factors fueled the 75% growth:
- PLI Scheme: ₹4,000 crore in incentives boosted local production, with Apple qualifying for 5% cashbacks on exports.
- Reduced Duties: Import tariffs on components cut to 15% from 22%, lowering costs.
- New Facilities: Tata’s Hosur plant and Foxconn’s Chennai expansion added 50,000 jobs and doubled capacity.
- Global Demand: iPhone 16 Pro and 17 models, with AI features, saw 20% higher orders in the U.S. and Europe.
- Supply Chain Shift: Apple moved 10% of iPhone production from China to India, reducing geopolitical risks.
Challenges and Competition
Despite the surge, hurdles remain:
- Logistics Costs: High freight charges add 5% to export costs.
- Competition: Samsung’s $3 billion exports and Xiaomi’s local growth challenge Apple’s share.
- Skill Gaps: Advanced chip manufacturing requires upskilling 100,000 workers.
- Domestic Pricing: iPhones remain pricey (₹80,000+), limiting mass-market adoption vs. Xiaomi’s ₹20,000 models.
Apple’s India Strategy: Scaling to $20 Billion
Apple aims to double exports to $20 billion by FY27, capturing 25% of global iPhone production:
- New Plants: Two additional facilities in Tamil Nadu and Karnataka by 2026.
- Component Ecosystem: 50% of iPhone components to be sourced locally by 2027, up from 20%.
- Retail Expansion: 10 new Apple Stores planned in metro cities by 2028.
- EV Synergy: Exploring battery tech for EVs, aligning with Tesla’s India push.
Analyst Rajeev Nair: “India’s iPhone exports signal a manufacturing powerhouse, but logistics and skills need work.”
Market Context: India’s Smartphone Export Boom
India’s smartphone exports hit $30 billion in FY25, with Apple contributing 60%. The $75 billion global iPhone market relies increasingly on India, which surpassed Vietnam as Apple’s second-largest hub after China.
Implications and Outlook
- Opportunities:
- Economic Impact: 200,000 direct jobs and 400,000 indirect jobs by 2026.
- Global Hub: India to account for 25% of iPhone output, reducing China reliance.
- Policy Win: PLI scheme drives 20% export growth across electronics.
- Challenges:
- Infrastructure: Port delays and power supply issues hamper scalability.
- Competition: Samsung and Xiaomi ramp up local production.
Conclusion: India’s iPhone Export Surge
The 75% surge in iPhone exports to $10 billion in H1 FY26 cements India’s role in Apple’s global supply chain, driven by Foxconn, Tata, and PLI incentives. With plans for $20 billion by FY27, India is a manufacturing star, though logistics and competition loom. For Apple, it’s a milestone—will India lead the iPhone revolution? The circuits hum. ET
