Apple is gearing up for a strategic production shift, and India is at the heart of it all. In a major move expected to reshape global supply dynamics, the tech giant plans to source most of its iPhones for the US market from Indian factories in the June quarter.
India’s iPhone output is projected to touch a remarkable value of nearly $40 billion in FY26, with approximately 80 percent of that production earmarked for US shores. This marks a significant leap from the current $22 billion figure, requiring a sharp rise in exports from $17.5 billion to about $32–35 billion. Meanwhile, domestic demand will likely cover $5–8 billion.
“Over 11 million iPhones were sold in the April-June quarter of 2024 with an average selling price (ASP) of $1,100, which means the value is $12.1 billion. While this remains Apple’s weakest quarter typically, the demand in terms of value will be higher than $12 billion,” said one industry analyst.
As per insights, Apple is rechanneling iPhones originally destined for regions like Europe, the UK, Turkey, and Japan toward the US. “Apple will likely reroute India-made iPhones meant for these markets to the US for the June quarter by tweaking the models,” a source confirmed.
Already, this move is gaining traction. According to reports, 98 percent of Apple’s iPhone exports from India in March, totaling around 3.1 million units, were US-bound—a sharp jump from February’s 84 percent.
The driving forces behind this effort are Foxconn and Tata Electronics. Foxconn is nearing the launch of its massive new production site in Bengaluru, built with a $2.8 billion investment. Meanwhile, Tata’s new unit in Hosur has started assembling earlier iPhone models.
Apple’s larger aim is to cushion the blow from rising US tariffs and simultaneously meet the booming American demand. With 40–45 million iPhones made in India in 2024—roughly 20 percent of global supply—Apple is clearly betting big on India.
The freight on board (FOB) value of exported iPhones rose from ₹28,500 crore to ₹48,000 crore in just one year. Despite a base FOB of $300–$500, iPhones reach end-users at prices up to $1,500, revealing a 2 to 3 times markup.
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