Apple is set to dramatically ramp up its iPhone manufacturing in India, targeting a value of close to $40 billion (approximately Rs 3,36,000 crore) by the end of FY26. The step is a part of the company's efforts to move its global supply chain out of China amid increasing geopolitical tensions and trade tariffs.
Industry estimates indicate that this tactic will enable Apple to meet 80 percent of the iPhone demand in the United States and also serve the entirety of India's growing domestic market.
This comes after a landmark announcement made by Apple CEO Tim Cook during the Q2 2025 earnings call. Cook announced that most iPhones sold in the US in the April-June quarter would be produced in India. "For June, we do anticipate that most iPhones that are sold in the US will be from India as their country of origin," Cook said, citing the reciprocal tariffs the US government has placed, which are compelling changes to Apple's manufacturing strategy.".
This move is a deliberate reaction to the effect of product-origin-based tariffs. Although China will continue to be the main source of the majority of Apple products available worldwide, India and Vietnam are increasingly assuming the role of manufacturing hubs. Cook pointed out that almost all US iPads, Macs, Apple Watches, and AirPods sold will now be made in Vietnam.
Apple anticipates a $900 million effect from US tariffs in the quarter, but the long-term effects of the shifts are unknown. "We cannot accurately forecast the impact of tariffs, because we do not know what actions may be taken in the future," Cook said on the call.
This shift also heralds Apple's increasing investment in India's electronic manufacturing industry, which has shown tremendous growth during the government's production-linked incentive (PLI) scheme. Smartphones, so far this FY25, have emerged as India's number one export category, hitting an all-time high value of Rs 2 lakh crore.
Apple has been the biggest driver of this growth, with iPhones composing close to 70 percent of India's overall smartphone exports. Apart from manufacturing growth, Apple is also deepening its footprint in India, with plans for opening more retail stores later this year, to supplement the two already up and running.
The company recently recorded a quarterly sales high in India, reflecting robust growth on both its products and services.
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