Business

Apple To Scale Up iPhone Production In India To $40 Billion By FY26

Apple is preparing to expand its iPhone production in India to nearly $40 billion (around ₹3.36 lakh crore) by the end of the financial year 2025-26, marking a significant shift in its global manufacturing strategy amid increasing geopolitical tensions and trade tariffs involving China.

Industry estimates suggest this expansion will allow Apple to fulfil 80 per cent of its iPhone demand in the United States and completely meet the needs of India’s growing domestic market.

This development follows Apple CEO Tim Cook’s comments during the company’s Q2 2025 earnings call.

He stated that most iPhones sold in the US during the April-June quarter would be manufactured in India.

“For June, we do expect the majority of iPhones sold in the US will have India as their country of origin,” Cook noted, highlighting the impact of reciprocal US tariffs that are reshaping global supply routes.

Apple is realigning its manufacturing in direct response to tariffs linked to product origin.

While China will continue to produce most Apple devices for markets outside the US, India and Vietnam are becoming key bases for manufacturing.

Cook pointed out that nearly all iPads, Macs, Apple Watches, and AirPods destined for the US market will now produced in Vietnam.

Tariffs To Cost Apple $900 Million This Quarter

The company expects a $900 million impact from US tariffs during the current quarter, though Cook acknowledged that the long-term effects remain uncertain.

He further added, “We are not able to precisely estimate the impact of tariffs, as we are uncertain of potential future actions.”

This transition also reflects Apple’s increasing commitment to India’s electronics manufacturing sector, which is experiencing significant growth under the government’s production-linked incentive (PLI) scheme.

Smartphones emerged as India’s top export category in FY25 so far, hitting a record value of ₹2 lakh crore.

Apple led this surge, with iPhones accounting for nearly 70 per cent of India’s total smartphone exports.

Beyond manufacturing, Apple is also strengthening its presence in India’s retail space, with plans to open more stores later this year in addition to the two currently operating.

The company recently recorded its highest-ever quarterly sales in India and reported robust growth across both products and services.

Also Read: Adani Ports Posts Record Profit In FY25; Cites Strong Execution & Global Expansion

Mankrit Kaur

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