Apple to Manufacture $40 Billion Worth of iPhones in India by FY26 Amid Global Supply Chain Shift
Apple Inc. is poised to ramp up iPhone production in India in a move that marks one of the tech giant’s most significant shifts in global manufacturing strategy. According to industry sources, Apple aims to produce iPhones worth nearly USD 40 billion (approximately ₹3.36 lakh crore) in India by the end of the 2025–26 financial year (FY26).
This strategic realignment comes amid escalating U.S.–China trade tensions and increasing tariffs on Chinese imports imposed by the United States. In response, Apple is accelerating efforts to diversify its supply chain, positioning India as a key production hub for its flagship device—the iPhone.
India to Serve Global and Domestic Demand
Apple is reportedly planning to use its Indian manufacturing base to meet up to 80% of iPhone demand in the U.S., a significant increase from current levels. In addition, India’s rapidly growing domestic smartphone market will also be fully serviced by local production.
In a recent earnings call, Apple CEO Tim Cook confirmed that the company expects a majority of iPhones sold in the U.S. during the April–June 2025 quarter to be manufactured in India. Cook stated that U.S. tariffs had prompted the company to reconsider its global production strategy.
Diversification Across Asia
While iPhone production is expanding in India, Apple is concurrently shifting the manufacturing of its other product categories—including iPads, MacBooks, Apple Watches, and AirPods—to Vietnam, diversifying its supply base across Asia to mitigate risk from geopolitical disruptions.
The company anticipates that the new U.S. import tariffs could impact its financials by around USD 900 million in the current quarter.
PLI Scheme Boosts Manufacturing Ambitions
Apple’s expansion aligns with India’s aggressive push to become a global electronics manufacturing powerhouse through the Production Linked Incentive (PLI) scheme. The initiative offers financial incentives to companies increasing domestic manufacturing output.
India’s smartphone exports reached a record ₹2 lakh crore in FY25, and Apple accounted for nearly 70% of that figure, underscoring its dominant role in India’s electronics export landscape.
Retail Footprint Also Growing
In addition to its manufacturing ambitions, Apple is steadily expanding its retail presence in India. With two flagship Apple Stores already operating in Mumbai and Delhi, the company plans to open several more locations across major Indian cities later this year.
This dual strategy—scaling up both production and retail operations—indicates Apple’s long-term commitment to the Indian market, not just as a manufacturing base but also as a vital consumer market.
