Apple is ramping up iPhone production in India to cater to growing demand from the United States, according to analysts cited by Moneycontrol. For the first time, Indian factories are expected to supply the bulk of U.S.-bound iPhones, with the June quarter alone projected to deliver devices worth $12–14 billion from India.
Production partners like Foxconn and Tata Electronics have emerged as key players in fulfilling Apple’s supply needs. If the current pace continues, India could manufacture nearly $40 billion worth of iPhones by FY26, with around 80% slated for export to the U.S.
“In the April–June quarter of 2024, over 11 million iPhones were sold with an average price of $1,100, translating to $12.1 billion,” an analyst noted, adding that this number is expected to grow as demand remains strong.
In response to rising tariffs on Chinese imports, Apple has reportedly begun diverting inventory initially intended for markets like the UK, Japan, and Europe to the U.S.
India’s role in Apple’s supply chain is expanding rapidly. In 2024, the country produced 40–45 million iPhones, or about 18–20% of Apple’s global output. Of these, 14–15 million units were exported to the U.S., 13 million to other regions, and 12 million sold within India.
To meet increasing export goals, Apple will need to boost Indian production from the current $22 billion to at least $32–35 billion, in addition to serving domestic demand worth $5–8 billion.
Capacity-building efforts are underway: Tata Electronics has started assembling older iPhones at its new Hosur plant, while Foxconn’s $2.8 billion facility in Bengaluru—set to be the firm’s second-largest globally—is poised to become a major hub for exports.
S&P Global data shows that 98% of iPhones exported from India in March were headed to the U.S., up from 84% in February. Most of this output came from Foxconn. According to ICEA, India’s iPhone exports reached ₹48,000 crore ($480 million) in the March quarter, compared to ₹28,500 crore ($285 million) a year earlier.
Although the freight-on-board (FOB) price of an iPhone from India is estimated at $300–$500 depending on the model, the retail price can be double or triple that due to added logistics, taxes, and marketing costs.
Apple CEO Tim Cook recently confirmed that most iPhones sold in the U.S. in the June quarter will originate from India. Meanwhile, production of iPads, MacBooks, and accessories is being routed through Vietnam.
